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Full-Text Articles in Securities Law
How Cheap Is Corporate Talk? Comparing Companies' Comments On Regulations With Their Securities Disclosures, James W. Coleman
How Cheap Is Corporate Talk? Comparing Companies' Comments On Regulations With Their Securities Disclosures, James W. Coleman
Faculty Journal Articles and Book Chapters
When companies face adverse proposed rules, they may want to convince regulators that the proposed rules are unworkable and should be changed while, at the same time, reassuring investors that the rules will be manageable. These conflicting incentives may lead to inconsistent messages in regulatory comments and securities disclosures, fueling a perception that corporate submissions to regulators are cheap talk. Despite this perception, there has been no empirical study comparing statements to these two audiences. This project performs such a study, taking the example of comments submitted on the Environmental Protection Agency's Renewable Fuel Standard. This standard provides an ideal …