Market Perception of SOX Act in the Case of US Listed Banks
AbstractThis paper examines the net effect of Sarbanes – Oxley Act of 2002 onto market valuation of bank holding shares. Overall analysis finds significant price growth in the years following the SOX Act. At the same time liquidity of the bank shares has improved, which implies SOX Act has produced benefits for US listed bank holdings. When analyzing shorter sequences, we confirm that banking industry enjoys reputation as well regulated industry as opposed to other industries, which drove the share prices and liquidity up.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by European Research Studies Journal in its journal European Research Studies Journal.
Volume (Year): XIV (2011)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.ersj.eu/
Sarbanes-Oxley Act; Bank Share Price Valuation; Liquidity; Equity Market of the US;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- M48 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Government Policy and Regulation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Huizinga, Harry & Laeven, Luc, 2008.
"International profit shifting within multinationals: A multi-country perspective,"
Journal of Public Economics, Elsevier,
Elsevier, vol. 92(5-6), pages 1164-1182, June.
- Harry Huizinga & Luc Laeven, 2006. "International profit shifting within multinationals: a multi-country perspective," European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 260, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Craig Doidge & G. Andrew Karolyi & RenÃ© M. Stulz, 2010. "Why Do Foreign Firms Leave U.S. Equity Markets?," Journal of Finance, American Finance Association, American Finance Association, vol. 65(4), pages 1507-1553, 08.
- Leuz, Christian, 2007. "Was the Sarbanes-Oxley Act of 2002 really this costly? A discussion of evidence from event returns and going-private decisions," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 44(1-2), pages 146-165, September.
- Litvak, Kate, 2007. "The effect of the Sarbanes-Oxley act on non-US companies cross-listed in the US," Journal of Corporate Finance, Elsevier, Elsevier, vol. 13(2-3), pages 195-228, June.
- Zhang, Ivy Xiying, 2007. "Economic consequences of the Sarbanes-Oxley Act of 2002," Journal of Accounting and Economics, Elsevier, Elsevier, vol. 44(1-2), pages 74-115, September.
- Hollis Ashbaugh-Skaife & Daniel W. Collins & William R. Kinney Jr & Ryan Lafond, 2009. "The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity," Journal of Accounting Research, Wiley Blackwell, Wiley Blackwell, vol. 47(1), pages 1-43, 03.
- John C. Coates IV, 2007. "The Goals and Promise of the Sarbanes-Oxley Act," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 21(1), pages 91-116, Winter.
- Ahmed, Anwer S. & McAnally, Mary Lea & Rasmussen, Stephanie & Weaver, Connie D., 2010. "How costly is the Sarbanes Oxley Act? Evidence on the effects of the Act on corporate profitability," Journal of Corporate Finance, Elsevier, Elsevier, vol. 16(3), pages 352-369, June.
- Brennan, Michael J & Hughes, Patricia J, 1991. " Stock Prices and the Supply of Information," Journal of Finance, American Finance Association, American Finance Association, vol. 46(5), pages 1665-91, December.
- Allaudeen Hameed & Wenjin Kang & S. Viswanathan, 2010. "Stock Market Declines and Liquidity," Journal of Finance, American Finance Association, American Finance Association, vol. 65(1), pages 257-293, 02.
- Marcia Millon Cornett & Hamid Mehran & Hassan Tehranian, 1998. "Are Financial Markets Overly Optimistic about the Prospects of Firms That Issue Equity? Evidence from Voluntary versus Involuntary Equity Issuances by Banks," Journal of Finance, American Finance Association, American Finance Association, vol. 53(6), pages 2139-2159, December.
- Pankaj K. Jain & Jang-Chul Kim & Zabihollah Rezaee, 2008. "The Sarbanes-Oxley Act of 2002 and Market Liquidity," The Financial Review, Eastern Finance Association, Eastern Finance Association, vol. 43(3), pages 361-382, 08.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Giannakopoulou).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.