From 'Federalization' to 'Mixed Governance' in Corporate Law: A Defense of Sarbanes-Oxley

Capital Structure , Corporate Governance , and the Effect of Sarbanes - Oxley

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to...

Sarbanes-Oxley Links IT to Corporate Compliance

In the wake of financial frauds and related audit issues, the US Congress passed the Sarbanes-Oxley (SARBOX) Act of 2002. Key to becoming SARBOX compliant are information systems (IS) that satisfy the mandates regarding internal controls, corporate governance, and fraud detection. These legal developments focusing senior management's attention on (1) internal controls are present and functionin...

The Relevance of the Common Criteria to Sarbanes- Oxley and Corporate Governance

Laws and regulations concerning corporate governance dictate that a system of internal control is an essential element in the structure. Information security is a subset of that internal control system. Well formed controls provide assurance that the majority of events will be detected in sufficient time to counter any adverse impact on the organisation, whilst others assist recovery when disas...

The Sarbanes-Oxley Act and the Making of Quack Corporate Governance

The Sarbanes-Oxley Act and Corporate Investment: A Structural Assessment∗

We assess the impact of the Sarbanes-Oxley Act of 2002 on corporate investment in an investment Euler equation framework, where a dummy for the passage of the Act is allowed to affect the rate at which managers discount future investment payoffs. Using generalized method of moments estimators, we find that the rate U.S. firm managers apply to discount investment projects rises significantly aft...