Little is known about how the SEC selects its targets for investigation. We study this subject using a new database of formal SEC investigations. We predict and find that case selection is associated with a firm’s (i) likelihood of regulatory noncompliance, (ii) exposure to private sector scrutiny, and (iii) conspicuous public trigger events. The relationship between investigations and regulatory noncompliance and private sector scrutiny preferences is sensitive to SEC constraints, whereas the relationship with triggers is not. We also examine the association between investigation motives and enforcement actions, an important SEC outcome reported to Congress. While regulatory noncompliance-motivated and public trigger-motivated investigations are more likely to result in public charges, specifically when the SEC is constrained, private sector scrutiny-motivated investigations are less likely to result in public charges. Finally, investigation rates of potential targets are associated with the career trajectories of SEC personnel, while investigation outcomes are not.

美国证券交易委员会如何选择其调查目标鲜为人知。我们使用 SEC 正式调查的新数据库来研究这个主题。我们预测并发现案例选择与公司的 (i) 监管不合规的可能性，(ii) 暴露于私营部门审查，以及 (iii) 显着的公共触发事件有关。调查和监管不合规与私营部门审查偏好之间的关系对 SEC 的限制很敏感，而与触发因素的关系则不然。我们还研究了调查动机与执法行动之间的关联，这是向国会报告的 SEC 的一项重要成果。虽然以监管不合规为动机和以公共触发为动机的调查更有可能导致公共指控，特别是当 SEC 受到限制时，私营部门出于审查动机的调查不太可能导致公共指控。最后，潜在目标的调查率与 SEC 人员的职业轨迹有关，而调查结果则没有。