We use the release by the Public Company Accounting Oversight Board on May 18, 2010 showing its oversight of certain foreign auditors has been denied as a natural experiment to examine investors’ early valuation of the PCAOB’s international audit oversight on U.S. listed foreign companies....

This study examines the effect of the passing of Sarbanes-Oxley Act (SOX) of 2002 as well as managerial entrenchment characteristics of corporations on the value-relevance of earnings. Our sample of observations is partitioned into three sub-periods: the Pre-Scandal (Pre-SCA) period, the Enron...

Based on a model developed in prior studies (e.g. Ogneva et al. 2007), we first use US data to predict the likelihood that a firm has material internal control weaknesses (ICW). We then show, using this model, that firms in the pre-SOX era, in UK and in Australia with a higher predicted...