Regulating Dynamic Risk in Changing Market Conditions
نویسندگان
چکیده
How successful are the SEC’s attempts to regulate dynamic risk in financial markets? Using mutual fund disclosure data from two shocks—the Puerto Rican debt crisis and COVID-19—we find evidence that SEC open-ended regulations, like obligation disclose changing market conditions, largely regulating dynamic, future risk. We of widespread and, often, detailed disclosures for new risks. But not all funds risks, those do vary specificity ranging individualized generic disclosures. This creates perverse incentives opt-out or downplay threats with boilerplate language when risks emerging. recommend several interventions improve including empirically monitoring disclosures, issuing guidance problematic variation is observed, enforcing standards.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3905506