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Full-Text Articles in Business Law, Public Responsibility, and Ethics
The Effect Of The Sarbanes-Oxley Act Of 2002 On Earnings Quality, Emily B. Blair
The Effect Of The Sarbanes-Oxley Act Of 2002 On Earnings Quality, Emily B. Blair
Senior Honors Projects, 2010-2019
The purpose of this paper is to determine the impact of the Sarbanes-Oxley Act of 2002 on the earnings quality of public firms. I begin by discussing the history of the act and examining its provisions. I then explain the significance of earnings quality and how earnings quality can be measured. After gathering financial statement and earnings quality data, I used SAS to compare quality of earnings before and after 2002. From the results, I concluded that the Sarbanes-Oxley Act of 2002 did in fact significantly improve earnings quality.
Why "Democracy" And "Drifter" Firms Can Have Abnormal Returns: The Joint Importance Of Corporate Governance And Abnormal Accruals In Separating Winners From Losers, Koon Boon Kee
Dissertations and Theses Collection (Open Access)
Do managers exercise accounting discretion in an opportunistic or efficient manner? Good governance structures, which mitigate agency costs, are necessary to ensure that the accounting information supplied by management is not opportunistically manipulated. The output of quality accounting information, in turn, serves as an input to better governance structures. Thus, governance and earnings quality (EQ) are inexorably linked through a complementarity relationship. This suggests two previously unexamined relationships. Firstly, the governance effects on performance in the influential paper by Gompers, Ishii and Metrick (2003) is overrated without good EQ, measured by the magnitude of abnormal accruals (AA), as an input. …