This study empirically evaluates the impact of the Private Securities Litigation Reform Act of 1995 (PSLRA) and the Sarbanes Oxley Act of 2002 upon the (equity) risk of the largest US firms, the backbone of the US economy. Drawing from the literature, hypotheses are developed and empirically...

This study explores the effect of internal control weakness (hereafter ICW) and their remediation on market liquidity, as measured by bid-ask spreads, for firms filed Section 404 reports with the SEC. First, we find that spreads are wider for ICW firms than for non-ICW firms. Such an association...

The phenomenon of creative accounting has attracted the attention of researchers for decades, especially in the financial sector for its implications on the quality of financial reporting. Although several procedures have been developed by researchers and practitioners to determine any...