DescriptionMy essays research on the information environment change due to the passage of the Sarbanes-Oxley Act (hereafter, SOX). SOX was enacted in 2002 to reform the financial market following a series of corporate scandals that negatively impacted investors’ trust in the integrity of financial reporting. SOX has two main sections that are related specifically to internal control issues within public companies. The two provisions, Sections 302 and 404, focus on Internal Controls over Financial Reporting (hereafter, ICOFR) and were enacted mainly to improve corporate financial reporting (Bedard et al. 2009), and arguably, have a great potential for doing so (Nicolaisen 2004). The effects of SOX in improving financial reporting has been verified by number of papers (e.g. Bedard 2006; Nagy 2010; Bizzaro et al. 2010). In particular, Section 302, which became effective on August 29, 2002, requires top officers of all public firms to disclose quarterly all MWs in the firm’s ICOFR. Beginning with fiscal year ending after November 15, 2004, Section 404 requires accelerated filers to assess the effectiveness of the ICOFR, and their auditors to both make their evaluation and to attest to management’s findings. In compliance with Section 404, non-accelerated filers are required, starting with fiscal years ending after December 15, 2007, to only document a management report on ICOFR. Prior literature find SOX increases both financial information quality and internal control efficiency. Based on these results, my essay tests the effects of improved information quality in three different areas. The first essay examines the audit market structure after SOX. Cross-sectional differences in audit fees can represent either the effect of quantity differences (in terms of hours of audit) or price differences in terms of an hourly fee (Simunic 1980a). My second essay examines whether SOX improves the information precision and leads to a faster reaction to information. My third essay examines whether SOX affects the boldness of analysts’ stock recommendations.