The Sarbanes-Oxley Act and the private company discount

An empirical investigation

Research output: Contribution to journalArticleResearchpeer-review

6 Citations (Scopus)

Abstract

While criticism of the Sarbanes-Oxley Act of 2002 (SOX) typically focuses on its negative impact on small public companies, this study uses acquisition data to empirically investigate whether the Sarbanes-Oxley Act impacts the value of private firms. This study presents strong evidence that the private firm discount was greater post-SOX. The evidence represents support for the argument that SOX has been more detrimental for private companies than for public companies.

Original languageEnglish
Pages (from-to)1105-1121
Number of pages17
JournalCritical Perspectives on Accounting
Volume19
Issue number8
DOIs
StatePublished - 1 Dec 2008

Fingerprint

act
firm
data acquisition
evidence
criticism
Discount
Empirical investigation
Sarbanes-Oxley Act
Sarbanes-Oxley Act of 2002
Private companies
Values
Private firms
Criticism

Cite this

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abstract = "While criticism of the Sarbanes-Oxley Act of 2002 (SOX) typically focuses on its negative impact on small public companies, this study uses acquisition data to empirically investigate whether the Sarbanes-Oxley Act impacts the value of private firms. This study presents strong evidence that the private firm discount was greater post-SOX. The evidence represents support for the argument that SOX has been more detrimental for private companies than for public companies.",
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The Sarbanes-Oxley Act and the private company discount : An empirical investigation. / Digabriele, James.

In: Critical Perspectives on Accounting, Vol. 19, No. 8, 01.12.2008, p. 1105-1121.

Research output: Contribution to journalArticleResearchpeer-review

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