Prior research has paid very little attention, if at all, to the risks and costs entailed in IT disintegration processes. In this study, we begin addressing this gap by studying how IT disintegration challenges posed by corporate divestitures affect the regulatory compliance risks and costs of divesting firms in the context of the Sarbanes-Oxley Act of 2002 (SOX). We hypothesize that firms with...

We find evidence that public firm disclosure, in the form of Management Discussion and Analysis (Sections 7 and 7a of annual reports), is more informative about the firm’s future risk following the passage of the Sarbanes-Oxley Act of 2002. Employing a novel text regression, we are able to predict, out of sample, firm return volatility using the Management Discussion and Analysis section from a...

Financial scandals and the related increase in mistrust of investors represented in the public view through the Enron and Worldcom cases led to various legal and community driven initiatives in recent years resulting in a tighter regulation context for companies with the overall goal to regain and strengthen stakeholders’ confidence and trust. The paper at hand presents how IT can support regul...

Past studies show that only a small percent of organizations implement and enforce formal rules or informal guidelines for the designing, testing, documenting, using, modifying, sharing and archiving of spreadsheet models. Due to lack of such policies, there has been little research on how companies can effectively govern spreadsheets throughout their life cycle. This paper describes a survey i...

This study examines the impact of the Sarbanes-Oxley Act (SOX) on bondholders, a significant investor group that has not been previously considered in the SOX literature. We find that bond values decline around the announcement of events leading up to the passage of SOX, consistent with market participants expecting SOX to impose net costs on bondholders. We further find that the decline in bon...

In this paper, we investigate the association between the strength of information technology controls over management information systems and the subsequent forecasting ability of the information produced by those systems. The Sarbanes-Oxley Act of 2002 highlights the importance of information system controls by requiring management and auditors to report on the effectiveness of internal contro...

a r t i c l e i n f o Past studies show that only a small percent of organizations implement and enforce formal rules or informal guidelines for the planning, design and development, usage, modification, and disposition stages of spread-sheet models. Due to the lack of such policies, there has been little research on how companies can effectively govern spreadsheets throughout their life cycle....

In recent years, scholars have noted the rise of ‘shareholder primacy’ or ‘shareholder value’ as an aspect of corporate governance. It has also been argued that the rise of shareholder primacy often has an injurious impact upon the interests of corporate employees. The argument suggests that under a certain type of capitalism, and particularly that which characterises ‘market-based’ rather than...

Seen as an essential element of economic development, corporate governance has been at the center debate since 1990s. Its crucial interest for good functioning financial markets is strongly mentioned. Over last two decades, motivations opting have diverse and varied: Cadbury report, OECD reports, reflections Basel Committee, adoption Sarbanes-Oxley Act (or SOX) in 2002 United States, work on "c...