SOX, corporate transparency, and the cost of debt

• المؤلفون الرئيسيون: Andrade, Sandro, BERNILE, Gennaro, Hood, Frederick
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2014
• الموضوعات: Sarbanes-Oxley; Corporate transparency; CDS pricing; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/3660; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4659/viewcontent/SSRN_id1257002.pdf

We investigate the impact of the Sarbanes–Oxley (SOX) Act on the cost of debt through its effect on the reliability of financial reporting. Using Credit Default Swap (CDS) spreads and a structural CDS pricing model, we calibrate a firm-level corporate opacity parameter in the pre- and post-SOX perio...