Finance and Financial Management Commons^™

Cost Of Capitol: Analyzing Congressional Insider Trading Regulation, Hannah Levy

Finance Undergraduate Honors Theses

The United States Congress has involved itself with the financial regulation of big business for decades. The legislative body has passed a multitude of laws over time which foster greater transparency and trust between individual investors and big business. Until recently, legislators have avoided passing laws which regulate their own financial activity. Recent investigations revealing that dozens of federal lawmakers have violated financial disclosure laws and made stock trades on insider information has successfully angered the public and forced Congress to consider tighter restrictions. But can Americans trust their legislators to effectively regulate themselves? If no legislative action is taken, …

Theranos: Case Study And Examination Of The Fraud Triangle, Abbey Jennings

Finance Undergraduate Honors Theses

Fraud is a serious issue which carries significant implications. Fraud committed by top level managers is particularly grievous, as it ripples through a firm, harming the company’s shareholders, employees, and credibility, while posing a threat to individuals and society (Zahra, et al.). A common framework in auditing, the fraud triangle, outlines three factors that if present, increase the risk or enable fraud to occur. The three factors are incentive, opportunity, and rationalization to commit fraud (Barlow).

In 2018, the Securities and Exchange Commission (SEC) charged Elizabeth Holmes, founder and CEO of a supposedly groundbreaking health tech company, Theranos, with what …

Insider Trading As A Precursor To Modern Business Ethics, Robyn Coleman

Finance Undergraduate Honors Theses

There has been a recent change in business that there is more focus on the “stakeholder approach” than shareholder primacy. This can be attributed to the early actions and illegality of insider trading that expected a step beyond a solely economic approach. This attitude was then replicated to become what we see as the modern business approach. Business now includes ethical investing, environmental focus, corporate citizenship, and emphasis on multiple stakeholders that was not always there. Companies have embraced this position while others have been criticized for not doing so. As this approach develops and changes, it will be enlightening …

The Effect Of Compliance With Section 404 Of The Sarbanes-Oxley Act On Small Cap Technology Company's Stock Prices, Joshua Weaver

Finance Undergraduate Honors Theses

This paper analyzes the effect of compliance with Section 404 of the Sarbanes-Oxley Act, also referred to as SOX, on small market cap technology firms using a comparable company analysis model. The comparable company analysis model is used to calculate and compare the average intrinsic values of 45 small and 45 large cap technology companies from the periods of January 1, 1999 to January 1, 2001 (Pre SOX era) and January 1, 2007 to January 1, 2009 (Post SOX era). The purpose of looking at large cap technology firms as a benchmark is to compare how different sized firms within …