Wearing out the Watchdog: The Impact of SEC Case Backlog on the Formal Investigation Process
研究了SEC执法部门案件积压对正式调查过程的影响，发现积压降低了调查重述公司的可能性，但未影响对收入确认和内幕交易案件的追查，却减少了最大股东损失案件的追查，并导致调查时间延长、处罚减轻。
ABSTRACT We examine a comprehensive set of investigations by the SEC’s Division of Enforcement offices to provide evidence on the consequences of these office’s busyness on the formal investigation process. We find that higher office case backlog decreases the likelihood of an investigation into a restating firm. Our results show no evidence that higher backlogs affect the SEC’s ability to pursue cases involving revenue recognition issues and high insider trading, which is consistent with the agency’s stated priorities. But our findings indicate that busy SEC offices are less likely to pursue cases with the largest shareholder losses, which is inconsistent with SEC priorities. Backlog also impacts pursued investigations, leading to more prolonged investigations, a lower Accounting and Auditing Enforcement Releases likelihood, and smaller SEC penalties. Our evidence suggests that busyness undermines the SEC’s investigation process. JEL Classifications: G18; G38; K42; M41.