Actions speak louder than words: An institutional perspective on the Securities and Exchange Commission

This paper employs an institutional perspective and quantitative methods to examine Securities and Exchange Commission (SEC) funding patterns. It is hypothesized that the institutional perspective will provide insights into the funding process not provided by more traditional modes of thought. The results suggest that SEC funding and enforcement actions are related. They also suggest that the economic health of the nation influences the amount of resources received by the SEC. Finally, there appears to be a link between political party affiliation and the predisposition to allocate funds to the SEC. The study suggests that SEC enforcement activities may not be totally random.