|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id1462232. ; Size: 367K
|
|
The Effect of SOX Section 404: Costs, Earnings Quality and Stock Prices
Peter Iliev
Pennsylvania State University - Department of Finance
August 26, 2009
Journal of Finance, Forthcoming
Abstract:
This paper exploits a natural quasi-experiment to isolate the effects that were uniquely due to Sarbanes-Oxley Act (SOX): US firms with a public float under $75 million could delay Section 404 compliance, and foreign firms under $700 million could delay the auditor’s attestation requirement. As designed, Section 404 led to conservative reported earnings, but also imposed real costs. Net-in-net, SOX compliance reduced the market value of small firms.
Number of Pages in PDF File: 73
Keywords: Sarbanes-Oxley Act, Section 404, Regression Discontinuity, Audit Fees, Earnings Management, Returns
JEL Classification: G18, G38, K22
working papers series
Download This Paper
Date posted: May 1, 2007
; Last revised: August 26, 2009
Suggested CitationIliev, Peter, The Effect of SOX Section 404: Costs, Earnings Quality and Stock Prices (August 26, 2009). Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=983772 or http://dx.doi.org/10.2139/ssrn.983772
|
| Feedback to SSRN (Beta) |
|
|
People who downloaded this paper also downloaded:
1.
Corporate Governance and Earnings Management
By
Sonda Marrakchi Chtourou,
Jean Bédard, ...
2.
The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity
By
Hollis Skaife,
Daniel Collins, ...
3.
Audit Committee, Board of Director Characteristics, and Earnings Management
By
April Klein
4.
A Review of the Earnings Management Literature and its Implications for Standard Setting
By
Paul Healy
and
James Wahlen
5.
Market Reaction to Events Surrounding the Sarbanes-Oxley Act of 2002 and Earnings Management
By
Haidan Li,
Morton Pincus, ...
6.
Regulation and Bonding: The Sarbanes-Oxley Act and the Flow of International Listings
By
Joseph Piotroski
and
Suraj Srinivasan
7.
Accruals Quality and Internal Control Over Financial Reporting
By
Jeffrey Doyle,
Weili Ge, ...
8.
Corporate Governance, Audit Quality and the Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing
By
Lawrence Abbott,
Susan Parker, ...
9.
Disclosure Quality and Earnings Management
By
Jian Zhou
and
Gerald Lobo
10.
Earnings Management and Corporate Governance: The Roles of the Board and the Audit Committee
By
Biao Xie,
Wallace Davidson, ...
|
|
|
|
