CEOs'/CFOs' Swearing by the Numbers: Does It Impact Share Price of the Firm?

This paper examines the impact on share prices of firms who's CEOs and CFOs certify their financial statements under oath, pursuant to the administrative order issued by the SEC on June 27, 2002. This paper hypothesize that the certification provides assurance to investors by making disclosure more credible and by reducing information asymmetry between owners and management, and the assurance value of certification is reflected in the stock price of the certifying company.