Open AccessThe Sarbanes-Oxley Act: A Cost-Benefit Analysis Using The U.S. Banking Industry
Author(s) -
Philip H. Siegel,
David P. Franz,
John O’Shaughnessy
Publication year - 2010
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v26i1.278
Subject(s) - sarbanes–oxley act , accounting , banking industry , business , return on assets , equity (law) , divergence (linguistics) , finance , economics , profitability index , law , audit , political science , linguistics , philosophy
There are many analyses of the economic effects that regulations, in general, and Sarbanes-Oxley Act, in particular, have had on American business. This analysis looks at the effect that the Sarbanes-Oxley Act has had on the American banking industry. The return on assets and return on equity were obtained from the Federal Reserve Bank for all SEC-registered and nonregistered banks for the period 2000 through 2005. Comparative results indicate that during the period that the Act had been in effect there is a marked negative divergence for SEC-registered banks as opposed to those banks that do not report to the SEC.