The above result shows that there is a significant difference in the values of

# The above result shows that there is a significant

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The above result shows that there is a significant difference in the values of both the ROE figures of the bank i.e before the introduction of the act and after the introduction of the act. It is evident from the fact that T stat value is greater than T critical value for two tail. Also the t stat value is higher than t critical value so we accept the Null hypothesis. i.e the ROE would be lower following the enactment of the Sarbanes-Oxley Act.

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t-Test: Two-Sample Assuming Equal Variances For alpha =0.05 Before SOX After SOX Mean 30.632 21.422 Variance 811.682627 4 307.292532 6 Observations 20 20 Pooled Variance 559.48758 Hypothesized Mean Difference 0 df 38 t Stat 1.23130149 P(T<=t) one-tail 0.11288820 8 t Critical one-tail 1.68595446 P(T<=t) two-tail 0.22577641 5 t Critical two-tail 2.02439416 4 Compare the t-critical value in the output with the t-value. The t-value (1.231) is smaller than the t-critical value (2.024). Therefore we accept the null hypothesis. i.e there is significance difference between the ROE's before and after the introduction of SOX. The above result shows that there is a significant difference in the values of both the ROE figures of the bank i.e before the introduction of the act and after the introduction of the act. It is evident from the fact that T stat value is greater than T critical value for two tail. Also the t stat value is higher than t critical value so we accept the Null hypothesis. i.e the ROE would be lower following the enactment of the Sarbanes-Oxley Act.
t-Test: Two-Sample Assuming Equal Variances For alpha =0.10 Before SOX After SOX Mean 30.632 21.422 Variance 811.682627 4 307.292532 6 Observations 20 20 Pooled Variance 559.48758 Hypothesized Mean Difference 0 df 38 t Stat 1.23130149 P(T<=t) one-tail 0.11288820 8 t Critical one-tail 1.30423020 4 P(T<=t) two-tail 0.22577641 5 t Critical two-tail 1.68595446 Compare the t-critical value in the output with the t-value. The t-value (1.231) is smaller than the t-critical value (1.686). Therefore we accept the null hypothesis. i.e there is significance difference between the ROE's before and after the introduction of SOX. For Alpha 1% t Critical Value 2.712 For Alpha 5% t Critical Value 2.024 For Alpha 10% t Critical Value 1.686 It is clearly evident that if we go on increasing the significance level, the acceptability range goes on decreasing.

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