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The Costs, Benefits and Unintended Consequences of the Sarbanes-Oxley Act 2002 - Essay Example
Author : glennie91
Finance & Accounting
Pages 6 (1506 words)
The Costs, Benefits, and Unintended Consequences of the Sarbanes-Oxley Act 2002 Introduction Hellen Gebremichael’s article “The Costs, Benefits, and Unintended Consequences of the Sarbanes-Oxley Act 2002” which was published in August 2012 expounds on the positive and negative effects of the Sarbanes-Oxley Act…
The Sarbanes-Oxley Act, which was enacted by the congress on 30th July 2002, benefited the corporate sector but not without posing certain challenges to public companies that was required to implement it. The Sarbanes-Oxley Act aimed at restoring the investors’ confidence, which had been extinguished by the numerous frauds that had affected or even led to collapse of different companies. This paper is a critical review of Gebremichaels’s article and will give a summary of the article, critically evaluate the arguments in the article by analyzing the weaknesses, limitations, and problems of the article. Additionally, the paper will focus on the strengths and usefulness of the article particularly for study purposes. Summary Gebremichael’s (2012) article “The Costs, Benefits, and Unintended Consequences of the Sarbanes-Oxley Act 2002” claims that Sarbanes-Oxley (Sox) Act of 2002 is the most discussed legislation in the capital market. The research was carried out with the aim of evaluating how implementation of the SOX Act had affected the capital markets, economy, and entire corporate sector in the United States. The study focused on aspects of the SOX Act such as the benefits, consequences, and cost of its implementation. ...