TY - JOUR
T1 - The Sarbanes-Oxley Act and the private company discount
T2 - An empirical investigation
AU - DiGabriele, James A.
PY - 2008/12
Y1 - 2008/12
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=55449112774&partnerID=8YFLogxK
U2 - 10.1016/j.cpa.2007.03.005
DO - 10.1016/j.cpa.2007.03.005
M3 - Article
AN - SCOPUS:55449112774
SN - 1045-2354
VL - 19
SP - 1105
EP - 1121
JO - Critical Perspectives on Accounting
JF - Critical Perspectives on Accounting
IS - 8
ER -