We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Restatements Post-SOX Affect Market Less: Study

Law360 (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.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.