The Sarbanes-Oxley Act introduces a new set of requirements into software development. Corporations need to assess their internal control effectiveness for business processes to show compliance with the act. This paper proposes a conceptual framework for integrating SarbanesOxley compliance needs into software development by mapping the activities of an established framework for internal contro...

What is the appropriate objective function for a firm? We analyze this question for the case where shareholders are prosocial and externalities are not perfectly separable from production decisions. We show that maximization of shareholder welfare does not necessarily equate to maximization of long-term shareholder value. We also show that the first objective is not sustainable in the presence ...

This paper examines vertical integration and its impact on profitability and shareholder value in the global banking industry. We derive a measure for vertical integration using a sample of 859 banks from 9 Anglo-Saxon and European countries covering the timeframe 1997-2002. Our results suggest that banks either operating on highly integrated or highly disintegrated levels of vertical integrati...

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...