Propensity To Just Meet or Beat Quarterly Earnings Forecasts: An Examination of The Effects of Sox Sections 302 and 906

Authors

Stacy Ann Mastrolia, Bucknell University

Abstract

This paper examines whether the provisions of SOX Sections 302 and 906 are associated with improved quarterly financial reporting quality. SOX 302 and 906 require that senior managers certify the accuracy of their quarterly financial statements, and false certification now carries criminal penalties. Specifically, this paper examines whether companies are more or less likely to just meet or beat their quarterly earnings forecasts following the implementation of SOX 302 and 906. My results indicate that following Sox 302 and 906, companies are less likely to just meet or beat their quarterly earnings forecasts for quarters 2, 3, and 4, suggesting that SOX 302 and 906 are associated with improved financial reporting quality.

Volume

6

Issue

1

First Page

107

Last Page

115

DOI

10.58809/ULMH5340

Comments

For questions contact ScholarsRepository@fhsu.edu

Rights

© Fort Hays State University

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Recommended Citation

Mastrolia, Stacy Ann (2010) "Propensity To Just Meet or Beat Quarterly Earnings Forecasts: An Examination of The Effects of Sox Sections 302 and 906," Journal of Business & Leadership: Research, Practice, and Teaching (2005-2012): Vol. 6: No. 1, Article 12.
DOI: 10.58809/ULMH5340
Available at: https://scholars.fhsu.edu/jbl/vol6/iss1/12