Costello Research SEC/PCAOB

A Mason professor unpacks the complex, nuanced impact of the “revolving door” between industry and regulators in the accounting world.

Research by Mason Accounting Professor Bret Johnson, a former SEC staff accountant and academic fellow, shows how seemingly mundane intra-agency policies can have unintended effects that benefit Wall Street over Main Street.

Bret Johnson, assistant professor of accounting at Mason, recently co-authored a paper in Management Science finding that SEC comment letters are leaking out among investors close to the company concerned, who then use it to their advantage. Technically, such information-sharing violates Regulation Fair Disclosure (FD), which prohibits companies from sharing secrets with network partners such as institutional investors and analysts.