Economic effects of SOX Section 404 compliance: A corporate insider perspective

• Main Authors: Alexander, Cindy, Bauguess, Scott, BERNILE, Gennaro, Lee, Alex, Marietta-Westberg, Jennifer
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Corporate governance; Internal controls; Regulation; Sarbanes-Oxley; Section 404; Accounting; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3661; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4660/viewcontent/EconomicEffictsSOX_4004_av.pdf
• Institution: Singapore Management University

We use survey responses from 2,901 corporate insiders to assess the costs and benefits of compliance with Section 404 of the Sarbanes-Oxley Act. The majority of respondents recognize compliance benefits, but they do not perceive these benefits to outweigh the costs, on average. This is particularly...