Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Material Weaknesses and Share Price

Material Weaknesses and Share Price

by Rick Turoczy on March 12, 2005

Just 12 of 18 companies that made material-weakness disclosures in February saw their share price fall the day after, according to a recent analysis. And in 6 of the12 cases, the decline was less than 2 percent. Investors don’t seem to be punishing companies that report material weaknesses in their internal controls under Section 404 of the Sarbanes-Oxley Act, according to an analysis conducted by Compliance Week. (As for whether the CFOs of these companies will pay the price anyway, that’s a matter of wait-and-see.)

The publication’s website, citing data from Raisch Financial Information Services, found that just 12 of 18 companies that made material-weakness disclosures in February saw their share price fall the day after the disclosure. And in 6 of the12 cases, the decline was less than 2 percent.

Material Weaknesses and Share Price

Leave a Comment

Previous post:

Next post: