An empirical examination of the impact of the Sarbanes Oxley Act in the reduction of pension expense manipulation

► We examine whether or not firms manipulate pension expense during 1999 through 2005. ► Then we examine whether or not firms manipulate pension expense less after SOX. ► Benchmark firms are shown to manipulate pension expense less after SOX. ► Smoothing firms are shown to manipulate pension expense more after SOX. ► Results indicate mixed evidence on the effectiveness of SOX via pension expense.