The Securities Exchange Act Is a Material Girl, Living in a Material World
Author | : J. W. Verret |
Publisher | : |
Total Pages | : 22 |
Release | : 2015 |
ISBN-10 | : OCLC:1306454100 |
ISBN-13 | : |
Rating | : 4/5 (00 Downloads) |
Download or read book The Securities Exchange Act Is a Material Girl, Living in a Material World written by J. W. Verret and published by . This book was released on 2015 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Article responds to a piece by Lucian Bebchuk and Robert Jackson, “Shining Light of Corporate Political Spending,” which argues in favor of a rulemaking petition submitted by the authors to initiate a mandatory rule pursuant to the Securities Exchange Act requiring companies to disclose political expenditures, including contributions to politically active non-profits. This Article explores the economic cost-benefit analysis requirements that constrain SEC rulemaking and argues that when making a mandatory disclosure rule the SEC must demonstrate that the subject of the disclosure is material to investors. It shows how Bebchuk and Jackson have not made a sufficient case that corporate political expenditures meet that materiality threshold, nor that a mandatory disclosure rule would meet the SEC's cost-benefit analysis requirements. This is true particularly in light of how a mandatory disclosure rule risks inhibiting corporate freedom of speech.