Purpose – This paper aims to estimate the cost to US savings banks and savings and loan institutions with assets under $250 million of complying with the anti‐redlining Community Reinvestment Act (CRA). Design/methodology/approach – Compliance cost is modeled as a type of inefficiency...

Purpose – This paper aims to examine why a legislature would repeal an interest group deal. Design/methodology/approach–This paper provides a case study of the House of Representatives’ roll call reversal on the Brady Bill. The House voted against the Brady Bill in 1988 giving a victory to...

Purpose – The purpose of this paper is to investigate the rationale for the failure of management and auditors to identify material internal control weaknesses (ICWs) in their initial Sarbanes-Oxley Act of 2002 (SOX) 404 reviews, resulting in subsequent restatement of their opinions....

Purpose – The purpose of this paper is to investigate the impact of the Sarbanes-Oxley Act (SOX) on market-based measures of earnings quality and cost of capital. Design/methodology/approach – The paper uses empirical data to determine measures for the market's perception of earnings quality...

Purpose – The purpose of this paper is to examine the empirical association between expected and unexpected audit fees and reported earnings quality for a sample of Big 4(5) client companies over a period from 2000 to 2005. Design/methodology/approach – The paper employs a cross-sectional...

Purpose – The purpose of this paper is to examine if a conflict of interest arises when auditors opine on an internal control system that consists of an information system recently designed and implemented by their own firm. Design/methodology/approach – A sample of companies was selected...

Purpose – The purpose of this paper is to examine information technology (IT) control deficiencies and their affect on financial reporting. Design/methodology/approach – This study examines 278 companies reporting IT control deficiencies in the first three years of the SOX 404 requirements...

Purpose – The purpose of this paper is to examine whether external auditor traits influenced the reporting of internal control deficiencies (ICDs) prior to SOX-mandated audits, holding constant the existence of a control weakness. Design/methodology/approach – Data are collected from...