Watching the Watchdogs: Tracking SEC Inquiries using Geolocation Data

rforno

Adversarial (eg, hacker) thinking is not confined to the computing and cybersecurity disciplines.

Abstract: The Securities and Exchange Commission's investigative process remains opaque and challenging to study due to limited observability. Leveraging de-identified smartphone geolocation data, we provide new insights into the SEC's monitoring practices by tracking SEC-associated devices that visit firm headquarters. Our findings reveal that the majority of SEC visits occur outside of formal investigations, with larger firms and those with a history of SEC enforcement actions being more frequently visited. These visits often cluster within industries. Notably, the SEC associated devices venture to firms both within and outside their own regions. On average, these visits are material, evidenced by significant stock price reactions, even in the absence of subsequent formal investigations or enforcement actions. Last, we observe a chilling effect on insider behavior around these SEC interactions; insiders are less likely to sell around visits. However, when sales do occur, insiders avoid substantial losses.

Full paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4941708

BenWP

And I thought going through the target’s trash was the way to get the dirt. Thanks @rforno. I believe the Times reported on this study as well.

rforno

BenWP said:

And I thought going through the target’s trash was the way to get the dirt. Thanks @rforno. I believe the Times reported on this study as well.

Trashing is sooooo last century. LOL

Crash

If only the Good Guys could keep up!