An underlying objective of the Sarbanes-Oxley Act is to provide investors with reliable information, which presumably should increases investor confidence in financial disclosures. In part to achieve this goal, managers now have personal legal liability for internal control over financial...

This paper examines the cumulative market reaction to the events related to deferral of internal control audit requirement under the Sarbanes-Oxley Act of 2002 and its elimination under the Dodd-Frank Act of 2010 for nonaccelerated filers (small firms). We document that small firms experienced...