51. The Regulatory Costs of Being Public
- Author:
- Michael Ewens, Kairong Xiao, and Ting Xu
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- An important explanation for the significant decline in the number of publicly listed companies in the United States is the increased burden of disclosure and governance regulations. Indeed, practitioners often point to heightened regulatory costs as the culprit of the disappearing public firms, while major deregulations such as the 2012 Jumpstart Our Business Startups (JOBS) Act were directly motivated by perceived costs of being public. Thus, understanding the role of regulations in the cost of being public and the decline in the number of public firms can address concerns about possible capital market dysfunction.
- Topic:
- Markets, Governance, Regulation, and Business
- Political Geography:
- North America and United States of America