JOURNAL OF ACCOUNTING AND FINANCE
How Do Investment Companies Fare Under Obama and Trump Fiduciary Rules?
Author(s): Cliff R. Moll, Robert A. Kunkel, Kristine L. Beck, Bruce D. Niendorf
Citation: Cliff R. Moll, Robert A. Kunkel, Kristine L. Beck, Bruce D. Niendorf, (2018) "How Do Investment Companies Fare Under Obama and Trump Fiduciary Rules?", Journal of Accounting and Finance, Vol. 18, ss. 7, pp. 62-70
Article Type: Research paper
Publisher: North American Business Press
Abstract:
In 2015 President Obama urged the Department of Labor (DOL) to update its fiduciary regulation. A
major factor driving this decision was a White House Council of Economic Advisers report showing that investment companies collect $17 billion annually in conflict-of-interest fees from American workers. Using an event study methodology, we find investment companies, on average, experience a large decrease in market capitalization from the Obama Effect. Conversely, the 2016 Trump presidential election signaled a continuation of the fees and a rollback in government regulations. The investment companies, on average, experience an astounding increase in market capitalization from the Trump Effect.