A new analysis from the U.S. Chamber of Commerce suggests that the concerns of public companies about policy risks have increased over the past decade, based on mentions in SEC filings.
The study looked at how many times S&P 500 companies referenced terms commonly associated with public policy risk in their 10-K filings with the SEC from 2011 to 2021. The report concluded that the mention of these terms associated with policy risks increased over the last decade as compared with other risks, which were relatively flat.
“The data show what business leaders tell us every day — rising public policy risks threaten business growth and innovation and our country’s global competitiveness,” Suzanne Clark, president and CEO of the U.S. Chamber of Commerce, said. “In Washington, the polarization, gridlock, regulatory overreach, and inability to act smartly and strategically for our future are making it harder for businesses to do their jobs and move this country forward.”
Specifically, the mention of terms in these filings associated with public policy risk increased by 27 percent in the past decade. This includes words or terms related to changes in taxes, regulations, and enforcement. The terms that saw the greatest percent increase in mentions were data privacy, immigration issues, labor, and intellectual property. The healthcare and utilities sectors saw the biggest increase in concerns over the last decade.
“Companies of all sizes face increasing headwinds from Washington and those risks are diversifying and intensifying,” U.S. Chamber Executive Vice President and Chief Policy Officer Neil Bradley said. “This report confirms what we have been hearing from our member companies about the growing threat of government overreach and the risk it poses to their businesses.”