Is CEO Certification Credible?

4 Pages Posted: 24 Mar 2004 Last revised: 12 May 2014

See all articles by Utpal Bhattacharya

Utpal Bhattacharya

HKUST Business School

Peter Groznik

University of Ljubljana - Faculty of Economics

Bruce Haslem

Southern Utah University - Department of Economics and Finance

Abstract

Congress included in the Sarbanes-Oxley Act a provision making CEO and CFO certification mandatory for all publicly listed firms. Clearly, regulators viewed certification as a valuable addition to the arsenal of corporate governance mechanisms. Yet, market professionals and commentators greeted certification with a great deal of skepticism. To gauge what shareholders think, we analyzed the trading behavior and price reaction around the time the certifications were due to reveal whether shareholders consider certification (or not certifying) to be good news, bad news, or no news at all.

Keywords: Sarbanes-Oxley Act, CEO certification, CFO certification, securities regulation, shareholder opinion, regulation, securities and exchange commission, SEC, market reaction

JEL Classification: G18, G38, G14, G34

Suggested Citation

Bhattacharya, Utpal and Groznik, Peter and Haslem, Bruce, Is CEO Certification Credible?. Regulation, Vol. 26, No. 3, pp. 8-10, Fall 2003, FSU College of Law, Law, Business & Economics Paper No. #, Available at SSRN: https://ssrn.com/abstract=511122

Utpal Bhattacharya (Contact Author)

HKUST Business School ( email )

Clear Water Bay
Kowloon
Hong Kong

Peter Groznik

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Bruce Haslem

Southern Utah University - Department of Economics and Finance ( email )

Cedar City, UT 84720
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
397
Abstract Views
2,836
rank
88,566
PlumX Metrics