The Effect of the Federal Judicial System on Public Enforcement: Evidence from SEC Enforcement Actions
研究发现，联邦地区法院效率越低，SEC越不可能对当地企业发起执法行动；法院效率高的地区，企业财务报告质量更高，且在私人执法较弱的子样本中效应更强。
ABSTRACT This study examines whether the efficiency of federal district courts affects the likelihood of SEC enforcement. The results indicate that the SEC is less likely to initiate enforcement actions against firms in less efficient federal district courts. In addition, the study examines the implications of court efficiency for firms’ financial reporting quality (FRQ). The evidence suggests that firms residing in more efficient federal districts have higher FRQ and the effect is stronger in subsamples with weak private enforcement regimes. Additional analysis of the choice of venue suggests that the SEC's decision to file in the District Court for D.C. is not affected by local court efficiency. Collectively, this study highlights the importance of an efficient federal judicial system for public enforcement.