Abstract
The SEC reviews all initial registration filings for disclosure quality enhancements and compliance with securities laws. The results of these reviews are documented in publicly-available comment letters from the SEC to the issuers. We study these comment letters for 95 firms that completed initial public offerings from 2004-2005. We analyze the letters to understand the content, frequency, and duration of the comment letter process. We examine the determinants of comment letter process attributes, focusing on managerial expertise and corporate governance explanations. We find that when the IPO firm has a CFO with prior public company experience, the firm receives fewer comments from the SEC that address fewer disclosure and financial reporting issues. Corporate governance structures appear to affect the overall IPO process, but not necessarily the comment letter process. Finally, we link our comment letter process measures to the IPO firms' information environment without results in our initial tests.
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