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Pincus Study Cited

But two earlier studies how the market responded to key legislative and rulemaking actions in the development of the Sarbanes-Oxley corporate-reform law, found entirely different results. The differences show how sensitive this kind of analysis is to seemingly small choices by researchers. University of Iowa accounting professor MORTON PINCUS argued that stocks fell because investors feared the bill wouldn't be passed, and not, as another study suggested, because of indications the bill would be passed and would be tougher than expected. Pincus said this represents the "basic difference in the results of the two studies." (Another unpublished study, from the University of Memphis, agrees with Dr. Pincus.)

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