Corporate governance and firm value: The impact of the 2002 governance rules

• 成果类型: Article
• 署名作者: Chhaochharia, Vidhi; Grinstein, Yaniv
• 署名单位: University of Miami; Cornell University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2007.01257.x
• 发表日期: 2007
• 页码: 1789-1825
• 关键词: MERGER-RELATED REGULATIONS; Sarbanes-Oxley Act; returns

摘要

The 2001 to 2002 corporate scandals led to the Sarbanes-Oxley Act and to various amendments to the US. stock exchanges'regulations. We find that the announcement of these rules has a significant effect on firm value. Firms that are less compliant with the provisions of the rules earn positive abnormal returns compared to firms that are more compliant. We also find variation in the response across firm size. Large firms that are less compliant earn positive abnormal returns but small firms that are less compliant earn negative abnormal returns, suggesting that some provisions are detrimental to small firms.