The Impact of Sarbanes-Oxley on Earnings Forecasts
Ronald A. Stunda

Abstract
This study provides empirical evidence regarding the credibility of management forecasts during pre-SOX and post-SOX forecasting periods. Bias results indicate that managers exert greater upward earnings management on the forecast during a pre-SOX environment, but tend to exert greater downward earnings management on the forecast during post-SOX time periods. Information content results indicate the presence of incremental information content in management forecasts in a post-SOX environment, and this information content is significantly different from that in a pre-SOX time periods.

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