SYNOPSIS We examine how internal control effectiveness influences the audit completeness of earnings announcements and consequences on reliability. One intentions Sarbanes-Oxley Act 2002 (SOX) was for controls to improve financial reporting. Although we show that effective directly reduce announcement revisions as SOX would intend, also find evidence it provides management with confidence relea...

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to...

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 purpose of this paper is to explore an optimal capital structure to maximize the shareholder wealth, also we try to determine the most significant determinants for shareholder value creation. Using a sample of French firms introduced on the stock exchange and belonging to SBF 250 index over a period from 1999 to 2005. We use in the paper a panel data. It provides the researcher a large numb...

The fact that managers pursue corporate growth and diversification as a primary objective, and that this objective might be contrary to other corporate goals, is well established. For example, Adams and Brock in The Bigness Complex note that “America’s corporate giants have not performed well over the last fifteen years...Bigness has not delivered the goods, and thus fact is no longer a secret”...