This paper examines the cumulative market reaction to the events related to deferral of internal control audit requirement under the Sarbanes-Oxley Act of 2002 and its elimination under the Dodd-Frank Act of 2010 for nonaccelerated filers (small firms). We document that small firms experienced...

This paper provides evidence on the incremental investor reaction to a going concern emphasis of matter paragraph (GC-EOM) in the auditor's report over financial statements disclosure of a going concern uncertainty (GC-FS). We make use of a “natural experiment” provided by a change in...