TY - JOUR
T1 - The chilling effect of Sarbanes-Oxley
T2 - A discussion of Sarbanes-Oxley and corporate risk-taking
AU - Dey, Aiyesha
PY - 2010/2
Y1 - 2010/2
N2 - Bargeron, Lehn, and Zutter [2009. Sarbanes-Oxley and corporate risk-taking. Journal of Accounting and Economics, forthcoming] document that as compared with non-US firms, risk-taking by publicly traded companies in the US declined after the passage of the Sarbanes-Oxley Act in 2002 (SOX). They conclude that this decline is related to board structure, firm size, and research and development expenditures. In my view, Bargeron, Lehn, and Zutter tackle an important question and provide carefully conducted analyses. However, as my discussion highlights, the question is difficult to answer, and as in similar studies on SOX, the evidence needs to be interpreted with caution.
AB - Bargeron, Lehn, and Zutter [2009. Sarbanes-Oxley and corporate risk-taking. Journal of Accounting and Economics, forthcoming] document that as compared with non-US firms, risk-taking by publicly traded companies in the US declined after the passage of the Sarbanes-Oxley Act in 2002 (SOX). They conclude that this decline is related to board structure, firm size, and research and development expenditures. In my view, Bargeron, Lehn, and Zutter tackle an important question and provide carefully conducted analyses. However, as my discussion highlights, the question is difficult to answer, and as in similar studies on SOX, the evidence needs to be interpreted with caution.
KW - Corporate risk-taking
KW - Risky investments
KW - Sarbanes-Oxley
UR - http://www.scopus.com/inward/record.url?scp=73949127212&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=73949127212&partnerID=8YFLogxK
U2 - 10.1016/j.jacceco.2009.06.003
DO - 10.1016/j.jacceco.2009.06.003
M3 - Article
AN - SCOPUS:73949127212
SN - 0165-4101
VL - 49
SP - 53
EP - 57
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
IS - 1-2
ER -