Abstract

http://ssrn.com/abstract=2106788
 
 

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Lobbying and One-Size-Fits-All Securities Regulation


Henry L. Friedman


University of California, Los Angeles (UCLA) - Accounting Area

Mirko Stanislav Heinle


University of Pennsylvania - Accounting Department

February 7, 2013


Abstract:     
Is securities regulation tailored to specific firms necessarily more efficient than regulation applied uniformly to all firms? We develop a model to compare individualized (IR) and one-size-fits-all (OS) regulation. In our model, two firms must raise capital from investors and can lobby the securities regulator, who is also subject to political pressure. We find that the OS regime is more welfare efficient than the IR regime due to less wasteful lobbying and more available funding. We also develop empirical predictions on how agency problems and product and capital market interactions between firms affect regulatory strength, lobbying, and costs of capital.

Number of Pages in PDF File: 43

Keywords: Securities, Regulation, Lobbying

JEL Classification: D72, G38, L51, M48

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Date posted: July 15, 2012 ; Last revised: February 12, 2013

Suggested Citation

Friedman, Henry L. and Heinle, Mirko Stanislav, Lobbying and One-Size-Fits-All Securities Regulation (February 7, 2013). Available at SSRN: http://ssrn.com/abstract=2106788 or http://dx.doi.org/10.2139/ssrn.2106788

Contact Information

Henry L. Friedman
University of California, Los Angeles (UCLA) - Accounting Area ( email )
D416 Anderson Complex
Los Angeles, CA 90095-1481
United States
Mirko Stanislav Heinle (Contact Author)
University of Pennsylvania - Accounting Department ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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