The 2000s

2018 ◽  
Author(s):  
Brian R. Cheffins
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Stock Market ◽  
Bad News ◽  
Public Companies ◽  
Big Business ◽  
Sarbanes Oxley ◽  
Financial Crisis Of 2008

This chapter analyzes the 2000s, which for public companies and the executives who ran them was akin to “the decade from hell.” The stock market performed poorly, the number of public companies declined substantially, and scandals in the early 2000s and the financial crisis of 2008 greatly eroded confidence in big business. A deregulatory trend that began in the late 1970s was reversed, epitomized by the enactment of the Sarbanes Oxley Act of 2002. A casualty of the bad news for public companies was the imperial-style CEO who featured prominently as the 1990s drew to a close. Those running banks nevertheless enjoyed a corporate governance “free pass” in the mid-2000s that arguably contributed to the onset of the financial crisis.

The SOX and Dodd-Frank Acts—Modern Federal Corporate Governance Initiatives

2018 ◽  
Author(s):  
Marc I. Steinberg
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Codes Of Ethics ◽  
Audit Committees ◽  
Federal Law ◽  
Wall Street ◽  
Corporate Scandals ◽  
Consumer Protection Act ◽  
Sarbanes Oxley ◽  
The 2008 Financial Crisis

In response to several corporate scandals, the Sarbanes-Oxley Act of 2002 (SOX) implemented substantive corporate governance mandates that were adopted as federal law. It focused on restoring financial disclosure transparency and revitalizing investor confidence in the financial markets’ integrity. A few years thereafter, the 2008 financial crisis precipitated the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). This Act aimed at forestalling another financial crisis through enhanced corporate governance regulation and placing meaningful restraints on undue risk-taking conduct. The chapter focuses on several key provisions of the SOX and the Dodd-Frank Acts, as well as SEC rules and regulations promulgated thereunder. Among these provisions as covered in this chapter are: CEO and CFO certifications, audit committees, executive clawback provisions, director independence, nominating and corporate governance committees, codes of ethics, corporate governance disclosures, say-on-pay and golden parachute provisions, loans to insiders, and equitable relief.

Evaluating Good and Bad News During Pre and Post Financial Meltdown: Nigerian Stock Market Evidence

2019 ◽  
Vol 64 (3) ◽  
pp. 1-22
Author(s):  
Kamaldeen Ibraheem Nageri
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Global Financial Crisis ◽  
Bad News ◽  
Good News ◽  
Share Price ◽  
Policy Responses ◽  
Negative News ◽  
On Line ◽  
The Global Financial Crisis

Abstract The Nigerian stock market, prior to the 2007-09 global financial crisis witnessed growth but the market encountered sharp reversal from 2007 due to the global financial crisis. This study evaluates good and bad news on the Nigerian stock market with regards to the policy responses as a result of the meltdown. The study used the TGARCH, EGARCH and PGARCH models under three error distributional assumptions for data covering January 2010 to December 2016 using the All Share Index to generate the return series. Findings shows that good news impact return more than negative news of the same magnitude before the meltdown while bad news insignificantly impact return more than positive news after the meltdown. The study concludes that there is information asymmetry in the Nigerian stock market. Thus, it is recommended that on-line real time access to share price movement for investors should be introduced to improve liquidity level and enhance free flow of relevant securities information.

The revenue persistence of US accounting firms: impacts of SOX and financial crisis

2019 ◽  
Vol 31 (3) ◽  
pp. 523-548
Author(s):  
KiKyung Song ◽  
Eunyoung Whang
Keyword(s):  
Financial Crisis ◽  
Design Methodology ◽  
Market Conditions ◽  
Accounting Firms ◽  
Content Type ◽  
Advisory Services ◽  
Sarbanes Oxley ◽  
Financial Crisis Of 2008 ◽  
The Impact ◽  
Management Advisory

Purpose Typical accounting firms offer three types of accounting services to their clients: accounting and auditing (AA), tax (TAX) and management advisory services (MAS). Each accounting service has a different revenue persistence. Moreover, revenue persistence is affected by exogenous events such as new regulations (e.g. Sarbanes-Oxley Act [SOX] in 2002) and market conditions (e.g. the financial crisis of 2008). This paper aims to examine the revenue persistence of accounting services and how it is affected by SOX and the financial crisis. Design/methodology/approach Using 742 firm-year observations from 100 of the largest US accounting firms from 1999 to 2015, this paper examines whether revenue from AA, TAX and MAS has different degrees of persistence and how SOX and the financial crisis in 2008 change the revenue persistence of each accounting service. Findings This paper finds that MAS generates more persistent revenue than AA and TAX. SOX enhances the revenue persistence of MAS. The financial crisis makes revenue from AA less persistent than during the pre-financial crisis period. Originality/value This paper contributes to the understanding of the revenue persistence of accounting services and the impact of exogenous events such as SOX and the financial crisis of 2008.

Achieving gender balance in the boardroom: is it time for legislative action in the UK?

Legal Studies ◽  
2010 ◽  
Vol 30 (4) ◽  
pp. 533-557 ◽  
Author(s):  
Charlotte Villiers
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
The Netherlands ◽  
Gender Quotas ◽  
Public Companies ◽  
Legislative Action ◽  
Gender Balance ◽  
The Uk

In the UK and across the globe, women struggle to get a place on the boards of large public companies and still take home less pay than their male counterparts. At a time of financial crisis and corporate governance failures, this lack of equality is considered especially problematic because the talents of half the workforce are not being utilised fully. This paper explores the possibility of introducing legislative gender quotas for company boardrooms in the UK. Such laws have been passed in Norway and Spain with dramatic results. Other countries, such as France and the Netherlands, look set to follow the examples of Norway and Spain. Has that time arrived in the UK?

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