Analysis of Investment Opportunities in a Post-SOX World
Author
Baker, Gary
Martin, James
Publisher
Washburn University. School of BusinessSponsor
Kaw Valley BankDate
November 2006Metadata
Show full item recordAbstract
Considerable analysis has already been done regarding the pros and cons of the Sarbanes-Oxley Act (SOX). This paper adds to the literature by analyzing a population of 114 companies who disclosed material weaknesses in internal control pursuant to SOX. Analysis focused on four key areas: calculation of market returns for companies not in compliance with SOX; assessment of risk associated with investing in companies not in compliance with SOX; examination of M&A opportunities for companies not in compliance with SOX; review of evidence of companies "going dark" after disclosing non-compliance with SOX. the results of the analyses were eye-opening leading the authors to the conclusion that there is life and in investment opportunity after SOX.