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Market Perception of SOX Act in the Case of US Listed Banks

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  • Martina Vitézová

Abstract

This paper examines the net effect of Sarbanes – Oxley Act of 2002 onto market valuation of bank holding shares. Overall analysis finds significant price growth in the years following the SOX Act. At the same time liquidity of the bank shares has improved, which implies SOX Act has produced benefits for US listed bank holdings. When analyzing shorter sequences, we confirm that banking industry enjoys reputation as well regulated industry as opposed to other industries, which drove the share prices and liquidity up.

Suggested Citation

  • Martina Vitézová, 2011. "Market Perception of SOX Act in the Case of US Listed Banks," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 155-170.
    • Handle: RePEc:ers:journl:v:xiv:y:2011:i:4:p:155-170
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    More about this item

    Keywords

    Sarbanes-Oxley Act; Bank Share Price Valuation; Liquidity; Equity Market of the US;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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