This article presents an overview of the regulatory regime created by the Sarbanes-Oxley Act of 2002 (SOX) and its implications for small firms. We review the available evidence in three distinct domains: compliance costs, stock price reactions, and firms' decisions to exit regulated securities markets.
Ehud Kamar, Pinar Karaca-Mandic & Eric L. Talley,
Sarbanes-Oxley's Effects on Small Firms: What is the Evidence?,
USC CLEO Research Paper No. C07-9; Harvard Law and Economics Discussion Paper No. 588; USC Law Legal Studies Paper No. 07-8
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/1478