Cheng, Mei; Dhaliwal, Dan; Zhang, Yuan - In: Journal of Accounting and Economics 56 (2013) 1, pp. 1-18
We provide more direct evidence on the causal relation between the quality of financial reporting and investment efficiency. We examine the investment behavior of a sample of firms that disclosed internal control weaknesses under the Sarbanes-Oxley Act. We find that prior to the disclosure,...