01664nas a2200145   4500008004100000245008600041210006900127260002000196490000700216520112600223653001501349100001701364700001801381856011901399       2018                        eng d00aThe Mitigation of High-Growth-Related Accounting Distortions after Sarbanes-Oxley0 aMitigation of HighGrowthRelated Accounting Distortions after Sar  aAmsterdamc20180 v303 aHere we examine accruals and book-tax differences before and after the Sarbanes-Oxley Act of 2002 (SOX) in the context of high-growth vs. lower-growth firms. Our examination is based on the notion that high growth creates unique management and reporting challenges that can contribute to distortions related to accruals and book-tax differences. SOX, with its emphasis on financial reporting, control systems and management responsibility, would be relevant for firms with such challenges. Our results show a stronger reduction (weaker increase) in total accruals and book-tax differences (performance-matched modified Jones discretionary accruals) for high-growth firms from the pre- to the post-SOX period relative to lower-growth firms. We also find evidence that the relation between accounting returns and market returns strengthened for high-growth firms in the period after SOX, but not for lower-growth firms. We interpret these results as greater reductions in accounting distortions and related improvements in reporting quality for high-growth firms relative to other firms coinciding with the post-SOX period.10aAccounting1 aMoore, Jared1 aGraham, Roger  u/biblio/mitigation-high-growth-related-accounting-distortions-after-sarbanes-oxley