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Full-Text Articles in Business
Has The Likelihood Of Appointing A Ceo With An Accounting/Finance Background Changed In The Post-Sarbanes Oxley Era?, Charles Cullinan, Pamela B. Roush
Has The Likelihood Of Appointing A Ceo With An Accounting/Finance Background Changed In The Post-Sarbanes Oxley Era?, Charles Cullinan, Pamela B. Roush
Accounting Department Faculty Journal Articles
Congress passed the Sarbanes–Oxley Act (SOX) in July 2002 to improve the accuracy and reliability of financial reporting. The Act increased boards of directors’ responsibilities for financial reporting and control. Did it consequently increase boards’ preferences for a CEO with financial experience to protect against the potential reputational and/or legal losses that directors incur when financial scandals happen? We investigated whether newly appointed CEOs in the post-SOX period were more likely to have accounting or finance experience than in the pre-SOX period. Using a sample of 264 CEO changes from 2001 to 2004, we found that the percentage of newly-appointed …