Corporate America and Sarbanes-Oxley Act: The Costs vs Benefits
|
Code : GOV0018
|
Region : USA |
||||
 |
 |
 |
OR |
||
|
Abstract: In response to the wave of scandals that damaged the reputation of corporate America, in 2002, the Securities Exchange Commission (SEC) formulated the Sarbanes-Oxley Act. The Sarbanes-Oxley Act intended to improve transparency, management accountability and bring in accuracy in corporate disclosures and help restore investors' confidence. Analysts believed that the benefits of the law would be realised in the long run and would help corporate America improve its tarnished image. However, companies had to bear huge compliance-related costs of the act. To bypass the act and avoid these huge costs they began to de-list from the New York Stock Exchange (NYSE) and other US stock exchanges. The case details the accounting irregularities and frauds that have gradually come to light since 2001. |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
Pedagogical Objectives:
Keywords :Corporate Governance Case Study, Sarbanes-Oxley act, Accounting scandals, Enron debacle, Corporate governance problems, Image of corporate America, Corporate disclosures, Compliance-related costs, Delisting from stock exchanges, Chief Executive Officer pay, Retaining investor confidence, Benefits to shareholders
Contents :
» Corporate America and the Auditing Industry
» Sarbanes-Oxley Act
» Costs vs. Benefits
» Public Company Accounting Oversight Board
Related Case Studies
- » Sarbanes Oxley & The Travails of Being a Small Cap Public Company
- » American Institute of Certified Public Accountants (AICPA): A Decade of Challenge and Change
- » Are Published Financial Statements Really Reliable?
- » Siemens Saddled with Scandals (A): Doubts Over German Board Structures
- » XFML: Betting on China – International Financing, Emerging Markets and Corporate Governance Risks
Case Studies on Parmalat
Recently Bought Case Studies
