The impact of the Sarbanes-Oxley Act: Early evidence from earnings management

Craig A. Depken, Bo Ouyang

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

This study investigates the impact of the Sarbanes-Oxley Act, passed in October 2002, on earnings management practices amongst firms in the three major US stock market exchanges. The evidence suggests that immediately after the Sarbanes-Oxley Act was enacted earning management declined by up to 12%, indicating that the political and economic costs of misleading the market through manipulation of earnings may have increased.

Original languageEnglish (US)
Pages (from-to)347-351
Number of pages5
JournalApplied Financial Economics Letters
Volume2
Issue number6
DOIs
StatePublished - Nov 1 2006

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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