Title: The Sarbanes–Oxley Act and firms’ going-private decisions
Abstract: We investigate going-private decisions in response to the passage of the Sarbanes–Oxley Act of 2002 (SOX). We study firms that go private from 1998 to May 2005 and find: (1) the quarterly frequency of going-private transactions has increased after the passage of SOX, and (2) abnormal returns surrounding both the passage of SOX and the going-private announcement are significantly related to proxies for the costs and benefits of SOX and the net benefits of being a public firm. Our empirical evidence is broadly consistent with the notion that SOX has affected firms’ going-private decisions.
Publication Year: 2007
Publication Date: 2007-09-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 513
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot