Unpublished Papers

Sarbanes-Oxley's Effects on Small Firms: What is the Evidence?

Ehud Kamar
Pinar Karaca-Mandic
Eric Talley

Abstract

This article presents an overview of the regulatory regime created by the Sarbanes-Oxley Act of 2002 (SOX) and its implications for small firms. We review the available evidence in three distinct domains: compliance costs, stock price reactions, and firms' decisions to exit regulated securities markets.