The Effect of SOX Section 404: Costs, Earnings Quality and Stock Prices

By Peter Iliev. 2010

440 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/29b56244a0253d054416fa382b48e8923484b814

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

In Strategy and Management

Citations in the corpus

Evidence-based policymaking: promise, challenges and opportunities for accounting and financial markets research** (2018, positive): “My second example is the study by Iliev (2010) examining the effects of the SOX on firm value, audit fees and corporate reporting.”
Do Independent Directors Cause Improvements in Firm Transparency (2014, background): “Second, in addition to the independence rules, the NYSE and Nasdaq and SOX added other corporate governance requirements.”
Restraining Overconfident CEOs through Improved Governance: Evidence from the Sarbanes-Oxley Act (2015, positive): “There is evidence suggesting that SOX might impose significant costs on some companies (see e.g., Iliev, 2010; Leuz et al., 2008).”
Capital-Market Effects of Securities Regulation: Prior Conditions, Implementation, and Enforcement (2016, background): “To get around this issue, Bushee and Leuz (2005) and Greenstone, Oyer, and Vissing- Jorgensen (2006) examine extensions of U.S. securities regulation in specific market segments only, and Iliev (2009) exploits a size-based compliance cutoff with a regression-discontinuity design.”
The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, background): “54 management, for instance, to meet analysts’ earnings targets, has declined (e.g., Cohen et al., 2008; Koh et al., 2008; Bartov and Cohen, 2009; Iliev, 2010) and that the recognition of losses has become more timely (e.g., Lobo and Zhou, 2006).”
Does Corporate Social Responsibility (CSR) Create Shareholder Value? Evidence from the Indian Companies Act 2013 (2017, positive): “greater than 2 trillion Korean Won, but not to smaller firms; and (iv) Iliev (2010) who studies the impact”
Europe's Second Markets for Small Companies (2012, positive): “Furthermore, some authors have recently cautioned that the optimal amount of disclosure and reporting is likely to vary across firms (Bushee and Leuz, 2005; Iliev, 2010).”
Trading Rules, Competition for Order Flow and Market Fragmentation (2015, methodology): “5 RD analysis is used in Rauh (2006), Chava and Roberts (2008), Roberts and Sufi (2009), Iliev (2010), and Bakke and Whited (2012).”
Shock-Based Causal Inference in Corporate Finance and Accounting Research (2015, methodology): “To address this manipulation, he uses (public float > $75M in 2002) as an instrument for SOX §404 compliance in 2004.”
Endogeneity - how failure to correct for it can cause wrong inferences and some remedies (2015, positive): “Several studies (see e.g., Ghosh and Pawlewicz, 2007; Griffin and Lont, 2007; Eldridge and Kealey, 2005; Charles et al. , 2010; Iliev, 2010) report significant increases in audit fees after Sarbanes-Oxley.”
The JOBS Act and IPO Volume: Evidence that Disclosure Costs Affect the IPO Decision (2015, background): “On the one hand, Zhang (2007) and Iliev (2010) show that SOX has been costly, and Gao, Wu, and Zimmerman (2009) and Engel, Hayes, and Wang (2007) show that firms have delisted or engaged in financial engineering to avoid its provisions. On the other hand, both Gao, Ritter, and Zhu (2013) and Doidge,”
Causal Inference in Accounting Research (2016, background): “Another example is work by Smith and Warner (1979), Kalay (1982), and many others who look at debt covenant provisions.”
How Much Does Size Erode Mutual Fund Performance? A Regression Discontinuity Approach (2015, background): “16 For example, to study the impact of the Sarbanes-Oxley Act on firms costs and earnings, Iliev (2010) exploits the fact that U.S. firms with a public float below $75 million in 2002, 2003, or 2004 were allowed to delay compliance with Section 404 until well after the November 2004 date on which…”
Where Have All the IPOs Gone (2013, neutral): “Iliev ((2010), p. 1163) estimates the costs of compliance and concludes that “on net, SOX compliance reduced the market value of small ﬁrms.””