SYNOPSIS Academic research can inform policy, enforcement, and rulemaking at the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). We argue that experimental accounting research is particularly well-suited to provide rigorous, causal evidence on issues central to these regulators’ missions. We review existing financial experimental studies relevant to securities regulation and classify them according to the SEC’s divisions and offices and FINRA’s oversight functions. This framework highlights where financial experimental evidence is relevant to regulatory activities and can help the SEC and FINRA identify research aligned with specific mandates. We also identify opportunities for future research and offer practical guidance to academics on communicating the relevance of their work, with the goal of strengthening the connection between research and securities regulation. JEL Classifications: D83; G11; G41; G53; M41.
Gale et al. (Wed,) studied this question.
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