SOX, Corporate Transparency, and the Cost of Debt
SOX, Corporate Transparency, and the Cost of Debt
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DOI：
10.2139/ssrn.1257002
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发表时间：
2013-09
期刊：
影响因子：
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通讯作者：
Sandro C. Andrade;Gennaro Bernile;Frederick M. Hood
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文献类型：
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作者：
Sandro C. Andrade;Gennaro Bernile;Frederick M. Hood
我们调查了萨班斯-奥克斯利(SOX)法案对债务成本的影响，通过其对财务报告可靠性的影响。使用信用违约互换(CDS)利差和结构性CDS定价模型，我们在SOX之前和后SOX时期校准了公司层面的公司不透明度参数。我们的分析表明，实施SOX后，公司透明度和债务成本显著降低。由于SOX降低了不透明度，我们样本中的中位数公司的五年期CDS利差减少了18个基点，为我们样本中的252家公司每年总共节省了8.44亿美元。此外，不透明度的降低往往更大，这些公司在前SOX期间具有较低的应计质量、较少的保守收益、较少的独立董事数量、较低的S透明度和披露评级，并且根据Chhaochharia和Grinstein(2007)的标准更有可能从SOX合规中受益。
We investigate the impact of the Sarbanes–Oxley (SOX) Act on the cost of debt through its effect on the reliability of financial reporting. Using Credit Default Swap (CDS) spreads and a structural CDS pricing model, we calibrate a firm-level corporate opacity parameter in the pre- and post-SOX periods. Our analysis shows that corporate opacity and the cost of debt decrease significantly after SOX. The median firm in our sample experiences an 18bp reduction on its five-year CDS spread as a result of lower opacity following SOX, amounting to total annual savings of $ 844million for the 252 firms in our sample. Furthermore, the reduction in opacity tends to be larger for firms that in the pre-SOX period have lower accrual quality, less conservative earnings, lower number of independent directors, lower S& P Transparency and Disclosure ratings, and are more likely to benefit from SOX-compliance according to Chhaochharia and Grinstein’s (2007) criteria.