Download This PaperIs CEO Certification Credible?
4 Pages Posted: 24 Mar 2004 Last revised: 20 Jun 2008
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: Suggested Citation
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