Going-Private Decisions and the Sarbanes-Oxley Act of 2002: A Cross-Country Analysis

By Ehud Kamar, P. Karaca-Mandic, Eric Talley. 2007

113 citations recorded by the source corpus.

This article investigates whether the passage and the implementation of the Sarbanes-Oxley Act of 2002 (SOX) drove firms out of the public capital market. To control for other factors affecting exit decisions, we examine the post-SOX change in the propensity of American public targets to be bought by private acquirers rather than public ones with the corresponding change for foreign public targets, which were outside the purview of SOX. Our findings are consistent with the hypothesis that SOX induced small firms to exit the public capital market during the year following its enactment. In contrast, SOX appears to have had little effect on the going-private propensities of larger firms. (JEL G30, G34, G38, K22) The Author 2008. Published by Oxford University Press on behalf of Yale University. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/dfa34eb24dcb3a6743a1ab9806fabc3be55fa2f3

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Citations in the corpus

The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research (2015, methodology): “However, Kamar et al. (2009) document evidence using a difference-in-differences design consistent with a compliance cost effect.”
Regulation and Bonding: The Sarbanes-Oxley Act and the Flow of International Listings (2008, background): “See Perino (2003), Coates (2007) and Kamar et al. (2007) for a good summary and discussion of the Act’s key provisions.”