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April 26, 2007

Press contact: Kirston Fortune, Assistant Dean for Communications, (512) 471.7330 or

Professor Kate Litvak Receives Best Paper Award for Special Issue of the Journal of Corporate Finance

AUSTIN, Texas—University of Texas School of Law Professor Kate Litvak’s paper, “The Effect of the Sarbanes-Oxley Act on Non-US Companies Cross-Listed in the US” has been chosen as the best paper for the forthcoming special issue of the Journal of Corporate Finance.

In her paper, Professor Litvak develops a novel method to estimate the effect of the Sarbanes-Oxley Act on financial markets. To separate the effect of the law from the effect of other contemporaneous events, Litvak uses a natural experiment created by the differential application of the Act to several groups of foreign companies. The paper finds that investors expected the Sarbanes-Oxley Act to have a net negative effect on cross-listed foreign companies, with better-governed companies suffering larger net costs.

A prize of $5,000 was given to the best paper accepted for publication in the special issue as determined by the editors of the special issue, Professor J. Smith and Professor H. Mulherin and J. Netter of Claremont McKenna College. The award was funded by the Financial Economics Institute at Claremont McKenna College and the Journal of Corporate Finance.

The award will be announced formally in the special issue on Boundaries of SEC Regulation. Details about the issues publication’s date are not yet available, although all the papers in the issue are available on the Journal’s website at:

About Professor Litvak

Litvak has taught at UT since 2004. She clerked for the Hon. Ralph K. Winter of the U.S. Court of Appeals for the 2nd Circuit and for the Hon. Frank H. Easterbrook of the U.S. Court of Appeals for the 7th Circuit. She was the John M. Olin Fellow in Law and Economics at Columbia Law School and at the University of Southern California Law Center.

Her primary scholarly interests are in the areas of venture capital and private equity, corporate and securities laws, corporate finance, and law and economics. Her current projects include a large empirical study of venture capital contracts; several studies of the impact of the Sarbanes-Oxley Act on foreign companies; and an empirical study of shareholder rights in 29 developing countries. Her papers are on SSRN:

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