Changes in risk of foreign firms listed in the U.S. following Sarbanes-Oxley
- 作者：Aigbe Akhigbe ; Anna D. Martin ; Takeshi Nishikawa
- 关键词：Sarbanes-Oxley ; Risk effects ; Foreign firms
- 刊名：Journal of Multinational Financial Management
- 出版年：2009
- 期刊代码：55_1042444x
- 类别：bus
- 出版时间：July 2009
- 卷：19
- 期：3
- 页码：193-205
- 文件大小：215 K
摘要
This study investigates the changes in the riskiness of foreign firms listed in the U.S. following the passage of the Sarbanes-Oxley Act (SOX), legislation aimed at calming investor fears. While capital market measures of risk increase on average over a shorter-term period, total and unsystematic risk measures decrease on average over a longer-term period. Finding longer-term decreases in these risk measures is consistent with reductions in investor uncertainty. Further cross-sectional analyses show that foreign firms considered to be less uncertain at the time of SOX passage received the greatest risk reductions in the post-SOX period. Thus, it appears that the less uncertain foreign firms especially benefited from the heightened awareness and investor focus that occurred in conjunction with the passage of SOX.