Did Conservatism in Financial Reporting Increase after the Sarbanes-Oxley Act? Initial Evidence

By Gerald J. Lobo, Jian Zhou. 2006

541 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4b47f68b5d6fce851a571ee5e47fe4d99bfd17b0

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 Strategy and Management

Citations in the corpus

Board of Directors' Characteristics and Conditional Accounting Conservatism: Spanish Evidence (2007, background): “Our findings are consistent with the evidence reported by Beekes et al. (2004) for a UK sample, and Lobo and Zhou (2006), Ahmed and Duellmann (2007) and Garcı́a Lara et al. (2009) for US samples.”
Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes Oxley Periods (2008, background): “5 In a related study, Lobo and Zhou (2006) investigate whether the SOX mandate that financial statements be certified by firms’ CEOs and CFOs resulted in an increase in the conservatism in financial reporting, and find evidence of greater conservatism in reported earnings.”
How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews (2010, background): “For example, Cohen et al. (2008) report that earnings management declined after SOX and Lobo and Zhou (2006) find that auditors appear to be more conservative after SOX.”
Auditing the auditors:Evidence on the recent reforms to the external monitoring of audit firms (2010, unknown): “Post-SOX changes in audit quality Recent research suggests that audit quality improved in the post-SOX era (e.g., Cohen et al., 2008; Lobo and Zhou, 2006), raising the possibility that the PCAOB reports lack information content because the documented weaknesses become less serious over time.”
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism (2015, unknown): “Lobo and Zhou (2006) find that there is an increase in accounting conservatism following the passage of Sarbanes-Oxley Act (SOX); accordingly SOX should have a positive impact on the level of conservatism.”
Auditor Conservatism and Investment Efficiency (2009, unknown): “in auditing their client firms (Cahan and Zhang 2006; Lobo and Zhou 2006 ).”
Women directors, family ownership and earnings management in Malaysia (2016, background): “In addition, large firms are more likely to overstate earnings because their activities are complex and users may have difficulty detecting earnings overstatements (Ishak et al., 2011; Lobo and Zhou, 2006; Shen and Chih, 2007).”
Changes in bonus contracts in the post-Sarbanes–Oxley era (2009, unknown): “3 Other papers supporting a decrease in earnings management include Lobo and Zhou (2006) and”
The Benefits of Conservative Accounting to Shareholders: Evidence from the Financial Crisis (2013, unknown): “…as the FASB, empirical studies find that accounting practice has become more conservative in the last 30 years, especially after the series of accounting scandals at the beginning of the twenty-first century and the passage of the Sarbanes–Oxley Act (SOX) (Givoly and Hayn 2000; Zhou and Lobo 2006).”
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).”
The Effect of Mandatory IFRS Adoption on Real and Accrual-Based Earnings Management Activities (2014, unknown): “On the other hand, Lobo and Zhou (2006) suggest that larger firms may be more inclined to manage their earnings because the complexity of”
An Anatomy of the Crude Oil Pricing System (2011, background): “Lobo and Zhou (2006) investigated the change in managerial discretion over financial reporting following the Sarbanes-Oxley Act and find an increase in conservatism in financial reporting.”
Ownership Structure and Earnings Management: Evidence from Portugal (2012, background): “On the other hand, large firms may have more incentives to increase earnings because this can bring more benefit to their managers (Lobo & Zhou 2006).”