The Experts below are selected from a list of 9036 Experts worldwide ranked by ideXlab platform
Ivy Xiying Zhang - One of the best experts on this subject based on the ideXlab platform.
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The ImpAct of the Sarbanes-Oxley Act on the Dual-Class Voting Premium
The Journal of Law and Economics, 2019Co-Authors: Feng Gao, Ivy Xiying ZhangAbstract:We examine the impAct of corporate governance laws on the private benefits of control, using the enActment of the Sarbanes-Oxley Act of 2002 (SOX) as a natural quasi experiment. We find a large decline in the average voting premium of US dual-class firms targeted by major SOX provisions that enhance boards' independence, improve internal controls, and increase litigation risks. The targeted firms also improve the efficiency of investment, cash management, and chief executive officers' compensation relative to firms not targeted by SOX. Overall, the evidence suggests that SOX is effective in curbing the private benefits of control.
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Economic Consequences of the Sarbanes-Oxley Act of 2002
Journal of Accounting and Economics, 2007Co-Authors: Ivy Xiying ZhangAbstract:This paper investigates the economic consequences of the Sarbanes-Oxley Act (SOX) by examining market reActions to related legislative events. Using concurrent stock returns of non-U.S.-traded foreign firms to estimate normal U.S. returns, I find that U.S. firms experienced a statistically significant negative cumulative abnormal return around key SOX events. I then examine the cross-sectional variation of U.S. firms' returns around these events. Regression results are consistent with the nonaudit services and governance provisions imposing net costs. Additional tests show that deferring the compliance of Section 404, which mandates an internal control test, resulted in significant cost savings for nonaccelerated filers.
Qiao Liu - One of the best experts on this subject based on the ideXlab platform.
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The Sarbanes-Oxley Act and corporate investment: A structural assessment ☆
Journal of Financial Economics, 2010Co-Authors: Qiang Kang, Qiao LiuAbstract:We assess the impAct of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework. We allow a dummy for the passage of the Act 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 after 2002, while the discount rate for U.K. firms remains unchanged. The effects of the legislation on corporate investment are asymmetric, and are much more significant among relatively small firms. We also find that well-governed firms, firms with a credit rating, and accelerated filers of Section 404 of the Act have become more cautious about investment.
Yayat Achdiat - One of the best experts on this subject based on the ideXlab platform.
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Implications of Sarbanes-Oxley Act Section 404 to the Effectiveness of Internal Control
Indonesian Management and Accounting Research, 2016Co-Authors: Yayat AchdiatAbstract:Financial crisis in many countries in the world since 1990 and the mid-1997 that envolved into economic crisis. a crisis of trust, and multi-dimentional crisis, which could effect the fall of the country's leaders establish in the Indonesian, shows that the financial system has a very starteeic role in the economy. and has a significant correlation and positif with the economic system. This research 4nd that the internal control model based on the Sarbanes-Oxley Act section 404 has the advantage than control models in the current conducted. SOA section 404 advantage is the inclusion of management asersi and public accountant atest in financial report, which requires the integrity of corporate management and public accountants as external auditors, because the asersi and atest should be based on the documents submitted and the results of assessment on the audit and internal control implemention. Thus if the model Sarbanes-Oxley Act is implemented then presented the financial report accountability will be more accurate.
Qiang Kang - One of the best experts on this subject based on the ideXlab platform.
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The Sarbanes-Oxley Act and corporate investment: A structural assessment ☆
Journal of Financial Economics, 2010Co-Authors: Qiang Kang, Qiao LiuAbstract:We assess the impAct of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework. We allow a dummy for the passage of the Act 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 after 2002, while the discount rate for U.K. firms remains unchanged. The effects of the legislation on corporate investment are asymmetric, and are much more significant among relatively small firms. We also find that well-governed firms, firms with a credit rating, and accelerated filers of Section 404 of the Act have become more cautious about investment.
Zabihollah Rezaee - One of the best experts on this subject based on the ideXlab platform.
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The Sarbanes-Oxley Act of 2002 and Market Liquidity
Financial Review, 2008Co-Authors: Pankaj K. Jain, Jang-chul Kim, Zabihollah RezaeeAbstract:Investors rely heavily on the trustworthiness and accuracy of corporate information to provide liquidity to the capital markets. We find that the rash of financial scandals caused a severe deterioration in market liquidity in the form of wider spreads, lower depths, and a higher adverse selection component of spreads vis-a-vis their benchmark levels. Regulatory responses including the Sarbanes-Oxley Act of 2002 (SOX) had inconsequential short-term liquidity effects but highly significant and positive long-term liquidity effects. These liquidity improvements are positively associated with the improved quality of financial reports, several firm-specific variables (e.g., size), and market fActors (e.g., price, volatility, volume).
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The Sarbanes-Oxley Act of 2002 and Accounting Conservatism
SSRN Electronic Journal, 2004Co-Authors: Zabihollah Rezaee, Pankaj K. JainAbstract:We examine the impAct of the Sarbanes-Oxley Act (the Act) on financial reporting conservatism. We analyze market-value-based, accrual-based, and earnings/returns relation measures of conservatism in the pre-Act period and post-Act period. Our results indicate that the impAct of the Act on measures of financial reporting conservatism is insignificant. Results do not support the claim that the Act induced more conservative financial reporting as determined by our three measures of accounting conservatism.
