The effect of SOX on the predictability of future cash flows in litigious and non-litigious industries

References

• Ali , A. and Kallapur , S. 2001 . Securities price consequences of the Private Securities Litigation Reform Act of 1995 and related events . The accounting review , 76 ( 3 ) : 431 – 460 .
   Web of Science ®Google Scholar
• Ashbaugh-Skaife , H. , Collins , D.W. and Kinney , W.R. Jr. 2007 . The discovery and reporting of internal control deficiencies prior to SOX-mandated audits . Journal of accounting and economics , 44 : 166 – 192 .
   Web of Science ®Google Scholar
• Ashbaugh-Skaife , H. 2009 . Deficiencies on firm risk and cost of equity . Journal of accounting research , 47 ( 1 ) : 1 – 43 .
   Web of Science ®Google Scholar
• Baker , T. and Griffith , S. 2007 . Predicting corporate governance risk: evidence from the directors’ and officers’ liability insurance market . The university of Chicago law review , 74 : 487 – 544 .
   Web of Science ®Google Scholar
• Bargeron , L.L. , Lehn , K.M. and Zutter , C.J. 2010 . Sarbanes-Oxley and corporate risk-taking . Journal of accounting and economics , 49 ( 1–2 ) : 34 – 52 .
   Web of Science ®Google Scholar
• Barth , M.E. , Cram , D.P. and Nelson , K.K. 2001 . Accruals and the prediction of future cash flows . The accounting review , 76 ( 1 ) : 27 – 58 .
   Web of Science ®Google Scholar
• Beaver, W.H., 1993. “Conservatism”, Working Paper, Stanford University (presented at the American Accounting Association national meeting, San Francisco, CA).
   Google Scholar
• Beckett, P., 2002. New SEC order forces executives to swear by their numbers. The Wall Street Journal, 5 July.
   Google Scholar
• Bowen , R.M. , Burgstahler , D. and Daley , L. 1987 . The incremental information content of accrual versus cash flows . The accounting review , 61 : 723 – 747 .
   Google Scholar
• Bumiller, E., 2002. Bush signs bill aimed at fraud in corporations. New York Times, 31 July.
   Google Scholar
• Cahan , S.F. 1992 . The effect of antitrust investigations on discretionary accruals: a refined test of the political cost hypothesis . The accounting review , 67 ( January ) : 77 – 95 .
   Google Scholar
• Chan , A.L. , Lee , E. and Lin , S. 2009 . The impact of accounting information quality on the mispricing of accruals: the case of FRS3 in the UK . Journal of accounting and public policy , 28 ( 3 ) : 189 – 206 .
   Web of Science ®Google Scholar
• Cohen , D. , Dey , A. and Lys , T. 2008 . Real and accrual-based earnings management in the pre- and post-Sarbanes-Oxley periods . The accounting review , 83 ( 3 ) : 757 – 787 .
   Web of Science ®Google Scholar
• Dechow , P. 1994 . Accounting earnings and cash flows as measures of firm performance: the role of accounting accruals . Journal of accounting and economics , 18 ( 1 ) : 3 – 42 .
   Web of Science ®Google Scholar
• Dechow , P.M. and Dichev , I.D. 2002 . The quality of accruals and earnings: the role of accrual estimation errors . The accounting review , 77 ( supplement ) : 35 – 59 .
   Web of Science ®Google Scholar
• Dechow , P. , Sloan , R. and Sweeney , A. 1995 . Detecting earnings management . The accounting review , 70 ( April ) : 193 – 225 .
   Google Scholar
• DuCharme , L. , Malatesta , P. and Sefcik , S. 2004 . Earnings management, stock issues, and shareholder lawsuits . Journal of financial economics , 71 ( January ) : 27 – 49 .
   Google Scholar
• Francis , J. , Philbrick , D. and Schipper , K. 1994 . Shareholder litigation and corporate disclosures . Journal of accounting research , 32 ( 2 ) : 137 – 164 .
   Web of Science ®Google Scholar
• Gleason , C.A. and Mills , L.F. 2002 . Materiality and contingent tax liability reporting . The accounting review , 77 ( 2 ) : 317 – 342 .
   Web of Science ®Google Scholar
• Gordon , L.A. 2006 . The impact of the Sarbanes-Oxley act on the corporate disclosures of information security activities . Journal of accounting and public policy , 25 ( 5 ) : 503 – 530 .
   Google Scholar
• Guay , W. , Kothari , S.P. and Watts , R. 1996 . A market-based evaluation of discretionary accrual models . Journal of accounting research , 34 ( supplement ) : 83 – 115 .
   Web of Science ®Google Scholar
• Healy , P.M. and Palepu , K.G. 1993 . The effect of firms’ financial disclosure strategies on stock prices . Accounting horizons , 7 ( 1 ) : 1 – 11 .
   Google Scholar
• Heninger , W. 2001 . The association between auditor litigation and abnormal accruals . The accounting review , 76 ( 1 ) : 111 – 126 .
   Web of Science ®Google Scholar
• Hribar , P. and Collins , D.W. 2002 . Errors in estimating accruals: implications for empirical research . Journal of Accounting Research , 40 : 105 – 134 .
   Web of Science ®Google Scholar
• Hughes, P.J. and Sankar, M.R., 1997, The impact of litigation risk on discretionary disclosure, Working Paper, University of California, Los Angeles, CA.
   Google Scholar
• Jain, P.K. and Rezaee, Z., 2004. The Sarbanes-Oxley Act of 2002 and accounting conservatism, Working Paper, University of Memphis.
   Google Scholar
• Jones , J. 1991 . Earnings management during import relief investigations . Journal of accounting research , 29 ( Autumn ) : 193 – 228 .
   Web of Science ®Google Scholar
• Kasznik , R. 1999 . Voluntary disclosure and earnings management . Journal of accounting research , 37 ( 1 ) : 57 – 81 .
   Web of Science ®Google Scholar
• Key , K. 1997 . Political cost incentives for earnings management in the cable television industry . Journal of accounting and economics , 23 ( 3 ) : 309 – 337 .
   Web of Science ®Google Scholar
• Klein , A. 2002 . Audit committee, board of director characteristics, and earnings management . Journal of accounting and economics , 33 ( 3 ) : 375 – 400 .
   Web of Science ®Google Scholar
• Kraft , A.G. , Leone , A.J. and Wasley , C.E. 2007 . Regression-based tests of the market pricing of accounting numbers: the Mishkin test and ordinary least squares . Journal of accounting research , 45 ( 5 ) : 1081 – 1114 .
   Web of Science ®Google Scholar
• Krishnan , J. and Lee , J.E. 2009 . Audit committee financial expertise, litigation risk, and corporate governance . Corporate governance , 28 ( 1 ) : 241 – 261 .
   Google Scholar
• Laux , C. and Laux , V. 2009 . Board committees, CEO compensation, and earnings management . The accounting review , 84 ( 3 ) : 869 – 891 .
   Web of Science ®Google Scholar
• Leuz , C. 2007 . Was the Sarbanes-Oxley Act of 2002 really this costly? A discussion of evidence from event returns and going-private decisions . Journal of accounting and economics , 44 : 146 – 165 .
   Web of Science ®Google Scholar
• Lobo , G. and Zhou , J. 2001 . Disclosure quality and earnings management . Asia-Pacific journal of accounting and economics , 8 ( 1 ) : 1 – 20 .
   Google Scholar
• Lobo , G. and Zhou , J. 2006 . Did conservatism in financial reporting increase after the Sarbanes-Oxley Act? Initial evidence . Accounting horizons , 20 ( 1 ) : 57 – 73 .
   Google Scholar
• Miller, G.S. and Piotroski, J.D., 2000. Forward-looking earnings statements: determinants and market response, Working Paper, The University of Chicago.
   Google Scholar
• Sankar , M.R. and Subramanyam , K.R. 2001 . Reporting discretion and private information communication through earnings . Journal of accounting research , 39 ( 2 ) : 365 – 386 .
   Web of Science ®Google Scholar
• Skinner , D. 1994 . Why firms voluntarily disclose bad news . Journal of accounting research , 32 ( Spring ) : 38 – 60 .
   Web of Science ®Google Scholar
• Subramanyam , K.R. 1996 . The pricing of discretionary accruals . Journal of accounting and economics , 22 : 249 – 281 .
   Web of Science ®Google Scholar
• Subramanyam , K.R. and Venkatachalam , M. 2007 . Earnings, cash flows, and ex post intrinsic value of equity . The accounting review , 82 ( 2 ) : 457 – 481 .
   Web of Science ®Google Scholar
• United States House of Representatives, 2002, The Sarbanes-Oxley Act of 2002, Public Law 107-204 [H. R. 3763], Washington, DC, Government Printing Office.
   Google Scholar
• Watts, R.L., 1993, A Proposal for research on conservatism, Simon School of Business Working Paper FR93-13, University of Rochester, Available from SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=6044.
   Google Scholar
• Zhao , Y. and Chen , K.H. 2009 . Earnings quality effect of state antitakeover statutes . Journal of accounting and public policy , 28 ( 2 ) : 92 – 117 .
   Web of Science ®Google Scholar
• Zhou , J. 2008 . Financial reporting after the Sarbanes-Oxley Act: conservative or less earnings management? . Research in accounting regulation , 20 : 187 – 192 .
   Google Scholar
• Zhou , J. and Elder , R. 2004 . Audit quality and earnings management by seasoned equity offering firms . Asia-Pacific journal of accounting and economics , 11 ( 2 ) : 95 – 120 .
   Google Scholar