The Sarbanes-Oxley Act and the private company discount: An empirical investigation

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8 Scopus citations


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
Issue number8
Publication statusPublished - 1 Dec 2008


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