Purpose – To provide background for senior and middle management in information technology organizations who may be in the implementation phase of compliance for Sarbanes-Oxley (SOX). As the information technology (IT) organization looks forward to additional compliance or other IT control frameworks such as COBIT, the paper can help construct a roadmap. Other audiences include senior managemen...

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...

Abstract We examine the impact of incentive compensation on riskiness acquisition decisions before and after passage Sarbanes–Oxley Act (SOX). Before SOX, equity-based was positively related to changes in risk around decisions, but this relationship weakened introduction SOX. The drop post-SOX acquisition-related stems from how managers respond compensation-based incentives new regulatory envir...

We examine the impact of corporate risk-taking on firm-level real earnings management. find that firms with higher engage in Our results are robust to a series robustness tests, including simultaneous least squares approach, firm fixed effect, change analysis, and pseudo difference-in-difference analysis. Additional analyses reveal management is more pronounced among experience prior-year loss ...