The eternal Pendulum: The US New deal helps the start-up companies to embed risks

　　Sina technology Zheng from the US Silicon Valley. Is corporate financial disclosure regulated, relaxed or strengthened? This is a delicate balance for policymakers in every country. Relaxation means energy and risk, and strengthening regulation is vice versa. 　　The financial scandals of Enron and WorldCom in the early part of this century have led to a Sarbanes of confidence in US investors, directly leading to the introduction of the 2002 Bill of Oxley. The new law will boost jobs but the policy seems to be chills. The issue was once again sparked by an overwhelming majority approval by the U.S. Senate last week of a "jobs" bill. 　　The bill's full name is "boosting the American Start-up Companies Act" (Jump-start our Business start-ups Act), which wants to boost the job market through startups, and jobs is exactly what "employment" means. U.S. President Barack Obama has made clear his support for the bill, and much of the bill comes from proposals from Mr Obama's employment council, Jobs Council. The first black U.S. president since taking office, the domestic economy has not seen a significant improvement, oil prices and unemployment has become the main issue of the campaign against Obama's performance. 　　Faced with the upcoming presidential election, Mr Obama is in dire need of such initiatives to retain voters. 　　The purpose of the Employment bill is clear: small companies and start-ups are the hope of the US economy, loosening the regulatory rules of these companies and helping them to finance and market more easily, creating more jobs. The bill includes six major parts: the resumption of capital markets for emerging-growth companies, the provision of financing channels for job creators, the provision of financing channels for entrepreneurs, the Small Companies Fundraising Act, the elasticity and growth of unlisted companies, and the capital expansion bill. 　　One of the most striking measures is to ease the regulation of small companies ' listing and the public financing rules of start-ups. According to the bill, emerging-growth companies that plan to make initial public offerings (annual revenues of not more than $1 billion trillion) can spend up to 5 years without disclosing some of their financial information and corporate governance requirements. 　　This includes the need for external independent auditors to prove the company's internal financial controls, as well as the loosening of contact restrictions on companies with analysts and investment bankers, which have previously been severely restricted in their actions to prop up the company's shares. In addition, the Jobs Act provides start-ups with new "VW financing" channels that can sell their shares to individual investors through the Internet and other media, raising up to 1 million dollars a year without registering with the Securities and Exchange Commission (SEC). 　　But the Senate amendment stipulates that intermediaries who help start-ups do public financing must register with the SEC to avoid fraudulent practices. Good and risk coexist for startups, the employment bill is a big boon. In the years when the U.S. economy was in financial crisis, Silicon Valley's High-tech start-ups have been a bright spot. 　　Loosening the rules would help many of the Silicon Valley start-ups to raise money more easily, turning outstanding ideas into products and users, and creating more entrepreneurial wonders such as Google and Facebook. On the other hand, deregulation could also open the door to commercial fraud and accounting scandals and create more pitfalls for investors. 　　With startups such as Zynga, Groupon and Facebook on the market, Silicon Valley's corporate valuations are soaring, and companies ' revenue and profit models are far from clear, and further easing of financial disclosures will allow more investors to blindly enter and push the valuation bubble to continue to swell. Public financing is not new, Kickstarter is currently the largest platform for creative project financing in the United States. But Jeffrey Robbins of the Messerli & Kramer law firm, Jeffrey Robbins, believes the bill may bring a period of financing chaos. 　　In his view, startups must be cautious about using public finance because it would lead to the emergence of hundreds of of shareholders in a start-up company, which would cause a capital structure disorder that would deter potential venture capital companies in the future. In addition, the Jobs Act allows start-ups to finance through "marketing". The most typical case was before the IPO of Groupon, co-founder Eric Lovkovski, who publicly sang his share price "Groupon will have a big profit outlook" Lefkofsky. 　　His comments sparked controversy at the time, but it would be reasonable to follow the employment bill. Indeed, the performance of Groupon appears to have validated the venture's investment risk. Groupon's share price has fallen by 60% since its IPO last November, while the Nasdaq index has risen 16% per cent. 　　Groupon's problems with accounting practices have also been criticised by investors. The New York Times commented that if the jobs bill was passed, internet companies such as Groupon would not have to disclose their financial information, and investors would have trouble getting a clear picture of their operations and finances and more likely to fall into a bubble trap, leading to huge investment losses. 　　Ironically, the SEC is currently investigating Groupon's financial disclosures. Behind the push and side effects the biggest beneficiary of the entrepreneurial Act is America's many internet companies, which are the main thrust behind the entrepreneurial act. According to the disclosure, AOL co-founder Steve Kessi (Steve case) vigorously lobbied the U.S. Congress to pass the bill. 　　In a public interview, he criticized the 2002 Sarbanes Act, which aims to strengthen the regulation of investors ' interests, Oxley that the bill would put a stranglehold on the financing of small start-up companies. When it comes to Groupon's investment risk,Kathy thinks this is an exception, because new business model companies are more complex to disclose information than traditional industry companies. "The Jobs Act is not perfect, but I believe we can strike a proper balance between deregulation and risk avoidance," he said. 　　He even Las Vegas gambling with tourists in Las Vegas. Fearing for investment risks, the Senate amended the bill to include some investor protections, requiring companies that put "public financing" to submit basic information, including directors, shareholders over 20% and the company's current basic financial position. 　　In addition, companies that finance less than $100,000 are required to submit tax rebates and financial documents, and companies that do not exceed USD 500,000 must submit corporate financial documents assessed by independent public accountants. But the relaxation of regulatory requirements for disclosure will also create a potential "side effect". With the new law requiring startups not to disclose detailed operational information, blind investors may be more convinced of research institutions such as muddy water and citron. 　　The agencies that are mainly selling negative information from shorting operations may be more motivated to identify "potential" financial risks, steer investors ' decisions, and manipulate a company's share price trend. If the entrepreneurial act triggers financial scandals in the future for startups, especially internet companies, it is believed that the pendulum of US regulators will again swing to the other end. But at least investors need not worry about Facebook, which will be listed next month, because its annual income (3.7 billion dollars last year) has far exceeded the threshold for start-ups under the Jobs Act.