Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 14, 2021 erstellt
Description:
Components of balance sheet asset growth driven by earnings management contributed to the asset growth anomaly in the past. These components of balance sheet asset growth are no longer related to returns and this has contributed to the disappearance of the asset growth anomaly. I provide evidence that the Sarbanes-Oxley Act reduced earnings management induced mispricing which I relate to the asset growth anomaly. More broadly, these findings point towards changes in the regulatory environment as a novel driver of equity market anomalies