Journal article
The effect of SOX on the predictability of future cash flows in litigious and non-litigious industries
Asia-Pacific journal of accounting & economics, v 19(2), pp 210-226
01 Aug 2012
Abstract
We investigate whether the role of discretionary accruals in predicting future operating cash flows changes after the passage of SOX. We also examine the information content of discretionary accruals in litigious industries. We find that discretionary accruals are positively associated with future operating cash flows and that discretionary accruals become even more important to predict future cash flows during the post-SOX period. Findings also indicate that litigious industry firms impart greater information content relative to those in nonlitigious industries prior to SOX being issued and that the SOX effect on discretionary accruals is weaker for such firms as a result.
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Details
- Title
- The effect of SOX on the predictability of future cash flows in litigious and non-litigious industries
- Creators
- Hsihui Chang - Drexel UniversitySang-Hyun Suh - University of Massachusetts Lowell, Robert J. Manning School of Business, Accounting DepartmentEdward M. Werner - Drexel UniversityJian Zhou - Shidler College of Business, University of Hawaii at Honolulu, School of Accountancy , Honolulu , HI , 96822 , USA
- Publication Details
- Asia-Pacific journal of accounting & economics, v 19(2), pp 210-226
- Publisher
- Routledge
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000307660600005
- Scopus ID
- 2-s2.0-84874322018
- Other Identifier
- 991019169521104721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics