This article has been forwarded to you at the request of [log in to unmask]


****************************************************************

Does Sarbanes-Oxley Hurt Shareholders and Hide Poor Management?

http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1080

In April 2004, minutes after posting healthy increases in sales and earnings, the publicly traded Niagara Corp. announced it was "going dark," delisting its common stock. The company, a steel manufacturer with sales last year of nearly $300 million, was hardly alone: During 2003 for example, 198 firms went dark, up from only 67 in the previous year. While most companies say they are deregistering from major exchanges to escape the steep costs associated with regulatory filings, some investors and others see darker reasons, rooted in serving insiders' self interest. A new study co-authored by Wharton accounting professor Christian Leuz entitled, Why Do Firms Go Dark? Causes and Economic Consequences of Voluntary SEC Deregistrations, analyzes this recent trend.

Visit http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1080 for the complete story.

This article is protected by copyright. For more articles like this, go to http://knowledge.wharton.upenn.edu

Your email address was only used to send this message and was not stored in our system nor recorded for any other purpose except to verify delivery.

List archives at http://lists.ufl.edu/archives/recmgmt-l.html
Contact [log in to unmask] for assistance