Purpose Motivated by the findings of Bhabra and Hossain (2017) that highlight an improvement in US market performance post-Sarbanes–Oxley (SOX) period, this paper aims to investigate how change varies with methods payment used for deals. Design/methodology/approach Deductive nature using event study approach, uses a sample 675 deals between 1999 2006 test three research hypotheses pre-post sett...

BY MICHAEL SPAFFORD, NEIL TORPEY, AMY CARPENTER-HOLMES AND JOANNE JOSEPH R ecent investigations and scandals have directed attention to the behavior of individual corporate executives. The common reaction to misconduct is to look to the people at the top; like it or not, corporate management is expected to accept responsibility and make appropriate amends if something goes wrong. Making amends ...

The Sarbanes-Oxley Act of 2002 has finally forced corporations to examine the validity of their spreadsheets. They are beginning to understand the spreadsheet error literature, including what it tells them about the need for comprehensive spreadsheet testing. However, controlling for fraud will require a completely new set of capabilities, and a great deal of new research will be needed to deve...

We document that the period following the passage of the Sarbanes Oxley Act of 2002 (SOX) is associated with a significant reduction in compensation-based incentives to take risk, which is related to a decline in risky investments. Moreover, consistent with the rules in SOX directly affecting CEOs’ incentives to take risk, we document that the decline in risky investments exceeds the amount tha...

The Sarbanes-Oxley Act of 2002, which President Bush signed into law last year, represents an ambitious effort by Congress to address many data retention and preservation issues arising from the Enron and Arthur Andersen debacles. In addition to creating a new and apparently powerful Public Company Accounting Oversight Board (“Oversight Board”) and addressing corporate responsibility issues, th...

We assess the impact of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework, where a dummy for the passage of the Act is allowed to affect the rate at which managers discount future investment payoffs. Using generalized method of moments estimators, we find that the rate U.S. firm managers apply to discount investment projects rises significantly aft...