Not sure where you extract is supposed to come from, the paper argue that
> Many have blamed the Sarbanes-Oxley Act of 2002 and the 2003
Global Settlement’s effects on analyst coverage for the decline in IPO activity. We find very little
support for the conventional wisdom, and offer an alternative explanation
> Not sure where you extract is supposed to come from
The paper. The one that was cited. (It was a working paper at the time.)
Nevertheless, your quote drives the point home. The paper rejects “the conventional wisdom” which “states that low public market prices are due to either lower valuations caused by the lack of analyst coverage, or to lower earnings as a public firm because of SOX and other costs.”
The Pro Publica article says that paper shows SOX did not reduce IPO volumes. That’s false. The earnings channel is rejected. But otherwise, the paper is about acquisition versus IPO.
It’s understandable incompetence. It turns into a lie when one digs in after the error is pointed out.
> No wonder you got ignored ..
If a journalist ignoring me means I can let their work be ignored in multiple state and national capitals, I will take it as a win.
(And with the benefit of hindsight, the article was dead wrong. I built a bit of a career on the private markets starting in 2012, as it happens.)
> Many have blamed the Sarbanes-Oxley Act of 2002 and the 2003 Global Settlement’s effects on analyst coverage for the decline in IPO activity. We find very little support for the conventional wisdom, and offer an alternative explanation
No wonder you got ignored ..
Edit: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1954788