Restatements Post-SOX Affect Market Less: Study

Law360, New York (October 12, 2007, 12:00 AM EDT) -- While a company will still see its stock price drop when it announces plans to restate its financial results, the decline is less severe since the Sarbanes-Oxley Act took effect, according to an academic paper by two economists.

A pair of Public Company Accounting Oversight Board economists released a study Thursday that indicates the market is not as unstable after a company discloses that financial restatements are on the horizon.

The study, which is scheduled for discussion at a PCAOB advisory group meeting on Thursday, found...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.