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| Content Provider | Springer Nature Link |
|---|---|
| Author | Akhigbe, Aigbe Martin, Anna D. Newman, Melinda |
| Copyright Year | 2009 |
| Abstract | We evaluate the shareholder wealth effects surrounding the passage of the Sarbanes-Oxley Act (SOX). While other studies have also measured wealth effects, none has separately examined technology firms. We discuss the unique characteristics of technology firms and assess whether technology firms are differentially affected. Our results show the portfolio of 218 technology firms experienced significantly more favorable wealth effects than the portfolio of 940 non-technology firms in response to events indicating stringent reform legislation. The cross-sectional analyses suggest that board independence, growth expectations, and R&D expenditures are influential factors in the differential stock price response of technology firms. Across our full sample of 1,158 firms, we find that wealth effects are less favorable for firms that likely will incur high compliance costs and more favorable for firms that are expected to benefit from improved governance and improved transparency. |
| Starting Page | 211 |
| Ending Page | 237 |
| Page Count | 27 |
| File Format | |
| ISSN | 10550925 |
| Journal | Journal of Economics and Finance |
| Volume Number | 35 |
| Issue Number | 2 |
| e-ISSN | 19389744 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2009-07-25 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Sarbanes-Oxley Governance Technology Economics general Financial Economics Finance /Banking |
| Content Type | Text |
| Resource Type | Article |
| Subject | Finance Economics and Econometrics |
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