Prior to the Oct. 1 government shutdown, investors hadconfidence in the U.S. capital markets and a majority felt verysecure in investing in the U.S. publicly-traded companies.

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That's according to the Center for Audit Quality's 2013 MainStreet Investor Survey. The poll of 1,013 investors in the U.S.found that investor confidence was at 69%.

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Investors said the longer the shutdown continued, the more their confidence would erode.

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Investor confidence would plummet to a record low of 39% ifCongress fails to raise the debt ceiling and the U.S. was todefault on its financial obligations, the survey showed.

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“We've not seen investor confidence in the U.S. capital marketsfall below 60% in the seven years we've conducted our survey,including in 2008 at the height of the financial crisis,” said CAQExecutive Director Cindy Fornelli.

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She added, “Staring at the real possibility that confidence dipsto 39% if the U.S. defaults should be an incentive for policymakersto resolve this situation.”

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In addition to measuring confidence, the survey also exploredthe factors that influence investment decisions, including whattypes of information investors find essential to theirdecision-making process.

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The survey found that investors consider more nonfinancialfactors as being essential to their investment decisions thanfinancial factors. Nonfinancial factors viewed as essential by fourin 10 investors or more include:

  • The sector or industry the company is in;
  • Whether a company has sound corporate governance in place;
  • The company's key strengths and weaknesses;
  • The strategy for future company growth;
  • The company's risks and opportunities;
  • Whether the company is operating in a socially responsiblemanner and/or an environmentally-friendly fashion.

The Washington-based CAO said it is a public policy organizationdedicated to enhancing investor confidence and public trust in theglobal capital markets.

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