To be or not to be public: the impact of SOX.: An article from: Quarterly Journal of Finance and Accounting

This digital document is an article from Quarterly Journal of Finance and Accounting, published by University of Nebraska-Lincoln on March 22, 2011. The length of the article is 12353 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

From the author: We examine firms that go completely private for the years 1999-2005 which surround the Sarbanes-Oxley (SOX) Act. Firms are more likely to go private when they have high levels of CEO ownership, even more so after SOX. Firms are also more likely to go private when they are smaller, out of favor with the market, have poor stock market performance and liquidity, and have greater institutional ownership post-SOX. The valuation effects from going private are mixed in the post-SOX period. Smaller firms experience significantly larger valuation effects after SOX. Those firms that are out-of-favor with the market, and cite the cost of being public experience more favorable valuation effects when going private between the inception of SOX and 2003, but not in a later period.

Citation Details
Title: To be or not to be public: the impact of SOX.
Author: Leonard Rosenthal
Publication:Quarterly Journal of Finance and Accounting (Magazine/Journal)
Date: March 22, 2011
Publisher: University of Nebraska-Lincoln
Volume: 50 Issue: 2 Page: 25(29)

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