Discussion of 'Unintended Consequences of Granting Small Firms Exemptions from Securities Regulation: Evidence from the Sarbanes-Oxley Act'

17 Pages Posted: 29 Apr 2009

See all articles by Rachel M. Hayes

Rachel M. Hayes

University of Utah - David Eccles School of Business

Abstract

(GWZ) examine a potential unintended consequence of the SEC’s use of bright-line thresholds for compliance with reporting regulations. In particular, the authors consider whether the SEC’s postponement of compliance with Section 404 of the Sarbanes-Oxley Act (SOX) for “non-accelerated filers” (firms with a public float of less than $75 million) provided firms with an incentive to stay small. The authors find that non-accelerated filers are more likely to remain below the $75 million threshold than are accelerated filers. They also investigate a variety of actions that non-accelerated filers might take in order to keep their public float below $75 million.

Suggested Citation

Hayes, Rachel M., Discussion of 'Unintended Consequences of Granting Small Firms Exemptions from Securities Regulation: Evidence from the Sarbanes-Oxley Act'. Available at SSRN: https://ssrn.com/abstract=1394630 or http://dx.doi.org/10.1111/j.1475-679X.2009.00320.x

Rachel M. Hayes (Contact Author)

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
22
Abstract Views
1,069
PlumX Metrics