The Effect of Sarbanes Oxley on Cross Listing : A Discussion of Piotroski and Srinivasan (2008)

I discuss the analysis in Piotroski and Srinivasan (2008) and how it helps to disentangle the effects of Sarbanes Oxley on observed listing patterns. Since the paper is quite thorough and reflects the comments from many workshop participants, I focus on broader issues. Further, I attempt to incorporate the gist of comments from the Journal of Accounting Research conference participants. I conclude that, while the paper provides important descriptive evidence, inherent design and measurement hurdles limit one’s ability to draw strong causal inferences about the effects of SOX on cross listing decisions