The unintended effects of the Sarbanes-Oxley Act

• Main Authors: CHHAOCHHARIA, Vidhi, OTTO, Clemens A., VIG, Vikrant
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Compliance costs; Business structures; Premiums; Leverage; Cash; Corporate governance; Target acquisitions; Market capitalization; Acquisition costs; Securities and Exchange Commission regulation; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5374; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6373/viewcontent/Unintended_SAO_av.pdf
• Institution: Singapore Management University

The Sarbanes-Oxley Act (SOX) was passed in the wake of several scandals that rocked corporate America in 2001 and 2002. The objective behind SOX was to improve corporate governance by improving accounting disclosures. Compliance with Section 404 is considered by many to be the most costly requiremen...