Firms change how they talk when they are closely watched by regulators. When under intense scrutiny, they use simpler and less self-serving language. By looking at different leaders of the U.S. SEC, researchers found that firms adjust their communication style based on the level of scrutiny. High-tech companies, for example, use less complex language when they know they are being closely monitored. This shows that firms tend to play it safe with their language when they are under a lot of scrutiny.