The Sarbanes Oxley Act recently enacted in the United States has brought about some fundamental changes in the way business is conducted. One such area is the creation of forward looking statements and the scrutiny the law legislates in terms of the accounting and auditing processes for any U.S. based firm. As a response to the increasing scandals with accounting and financial irregularities as well as overall ethical practices by managers, the U.S. Congress passed legislation to thwart future Enrons and World Coms scandals. Some believe the legislation is too stringent on U.S. firms, costs too much to implement and is actually turning foreign investment away from the U.S. This paper researches the topics and issues impacted by the Sarbanes Oxley Act, tells the responses and changes made in U.S. firms thus far and analyzes the response by international investors since the enactment of the SOX legislation. In addition, the authors give some thoughts about future actions to be taken by managers and legislators to build back investor confidence in the U.S. marketplace.
|Keywords:||Sarbanes Oxley (SOX), Scandals, Foreign Investors, International Investments, Ethics|
Lawyer, Mergers and Acquisitions Division, Paul Hastings Law Firm, Atlanta, Georgia, USA
Associate Dean, School of Business, Clayton State University, Morrow, Georgia, USA
Associate Professor of Marketing and Management, School of Business, Claflin University, Orangeburg, SC, USA
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