Journal of

Marketing Development and Competitiveness

Scholar Gateway

Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts

Girard  (p. 9-22)

Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

Coulmas-Law (p.42-46)

Stasio (p. 47-56)

Albert-Valette-Florence (p.57-63)

Zhang-Rauch (p. 64-70)

Alam-Yasin (p. 71-78)

Mattare-Monahan-Shah (p. 79-94)

Nonis-Hudson-Hunt (p. 95-106)

JOURNAL OF APPLIED BUSINESS AND ECONOMICS

The Impact of the Sarbanes-Oxley Act (SOX) on the Cost of Equity

Capital of S&P Firms

Author(s): Sheryl-Ann K. Stephen, Pieter J. de Jong

Citation: Sheryl-Ann K. Stephen, Pieter J. de Jong, (2012) "The Impact of the Sarbanes-Oxley Act (SOX) on the Cost of Equity Capital of S&P Firms," Vol. 13, Iss. 2, pp. 102 - 115

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This study examines the impact of SOX on the cost of equity capital for small and large S&P firms. The provisions of SOX aim to improve internal control systems and reduce information asymmetry by improving corporate governance systems and increasing transparency. Using a fixed-effects regression model, our findings suggest that the cost of equity capital has decreased post-SOX for the overall sample of firms, but more specifically for the small firms, which are usually associated with poor internal control systems and high information asymmetry. Collectively, our results provide evidence that SOX has had a positive impact on firms.