The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry

This article examines the risk effect of the Sarbanes-Oxley Act of 2002 (SOX) for the US financial services (FS) industry. The major provisions of SOX relate to increased transparency of the financial reporting system and improved internal governance of firms. The overall results support that SOX re...

Full description

Bibliographic Details
Main Authors: Haq, M., Pathan, Md Shams Tabrize, Hoque, M.
Format: Journal Article
Published: 2014
Online Access:http://hdl.handle.net/20.500.11937/76645
_version_ 1848763738138607616
author Haq, M.
Pathan, Md Shams Tabrize
Hoque, M.
author_facet Haq, M.
Pathan, Md Shams Tabrize
Hoque, M.
author_sort Haq, M.
building Curtin Institutional Repository
collection Online Access
description This article examines the risk effect of the Sarbanes-Oxley Act of 2002 (SOX) for the US financial services (FS) industry. The major provisions of SOX relate to increased transparency of the financial reporting system and improved internal governance of firms. The overall results support that SOX reduced the total risk and idiosyncratic risk of FS firms, particularly of banks, savings and insurance companies. Yet, this article finds an increase in systematic risk of banks, savings and insurance companies. This outcome may be due to increased financial integration, innovation, globalization and deregulation. © 2014 © 2014 Taylor & Francis.
first_indexed 2025-11-14T11:08:14Z
format Journal Article
id curtin-20.500.11937-76645
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T11:08:14Z
publishDate 2014
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-766452019-10-24T05:43:22Z The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry Haq, M. Pathan, Md Shams Tabrize Hoque, M. This article examines the risk effect of the Sarbanes-Oxley Act of 2002 (SOX) for the US financial services (FS) industry. The major provisions of SOX relate to increased transparency of the financial reporting system and improved internal governance of firms. The overall results support that SOX reduced the total risk and idiosyncratic risk of FS firms, particularly of banks, savings and insurance companies. Yet, this article finds an increase in systematic risk of banks, savings and insurance companies. This outcome may be due to increased financial integration, innovation, globalization and deregulation. © 2014 © 2014 Taylor & Francis. 2014 Journal Article http://hdl.handle.net/20.500.11937/76645 10.1080/09603107.2014.920477 restricted
spellingShingle Haq, M.
Pathan, Md Shams Tabrize
Hoque, M.
The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title_full The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title_fullStr The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title_full_unstemmed The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title_short The risk implication of Sarbanes-Oxley Act of 2002: An empirical examination of the US financial services industry
title_sort risk implication of sarbanes-oxley act of 2002: an empirical examination of the us financial services industry
url http://hdl.handle.net/20.500.11937/76645