Sarbanes-Oxley and its Aftermath: A Review of the Evidence

Glenn Boyle and Eli Grace-Webb

No 19076, Working Paper Series from Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation

Abstract: Introduced in response to several high profile US corporate collapses the Sarbanes-Oxley Act (SOX) of 2002 has proven to be a gold mine for academic researchers: after only five years no less than 528 studies of SOX appear on the Social Sciences Research Network (www.ssrn.com). This essay seeks to review the results of this research and provide a concise summary of the available evidence as of late 2007. Overall although SOX appears to have had some beneficial effects it has also: increased the costs of auditing governance and human capital and compliance more generally; induced a mis-match between auditors and firms; encouraged firms to delist or otherwise stay below the regulatory radar; lowered corporate investment and risk-taking; and had ambiguous effects on the quality of investor information and capital market eeffciency.

Keywords: Sarbanes-Oxley Act (SOX) (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ir.wgtn.ac.nz/handle/123456789/19076

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcsr:19076

Access Statistics for this paper

More papers in Working Paper Series from Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation ISCR, PO Box 600, Victoria University Wellington 6140, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by Library Technology Services ().