The sarbanes-Oxley act and firms' going-private decisions

• 成果类型: Article; Proceedings Paper
• 署名作者: Engel, Ellen; Hayes, Rachel M.; Wang, Xue
• 署名单位: University of Chicago; Utah System of Higher Education; University of Utah; Emory University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2006.07.002
• 发表日期: 2007
• 关键词: free cash flow; economic consequences; capital-markets; disclosure

摘要

We investigate going-private decisions in response to the passage of the Sarbancs-Oxley Act of 2002 (SOX). We study firms that go private from 1998 to May 2005 and find: (1) the quarterly frequency of going-private transactions has increased after the passage of SOX,, and (2) abnormal returns surrounding both the passage of SOX and the going-private announcement are significantly related to proxies for the costs and benefits of SOX and the net benefits of being a public firm. Our empirical evidence is broadly consistent with the notion that SOX has affected firms' going-private decisions. (c) 2006 Elsevier B.V. All rights reserved.