The costs of implementing SOX have been quite high. Because of the significant financial burden faced by public companies, the necessity of the law has been questioned. Even though the costs fall as the companies familiarize themselves with the internal workings of the Act, studies have shown that a decrease in listed public companies is on the horizon. It is both easier and more cost-effective for a company to move to a foreign exchange with less rigorous laws than it is to implement the criteria required by the US government. The cost of implementing SOX directly transfers to the investing public. The bottom line is hit with significant expenses, therefore lowering profits, and finally reducing the price per share. The benefits, on the other hand, are not readily felt. The investing public is non-trusting of public corporations and their government oversight. Time will bring clarity to the benefits of the Act.
SOX, in my... [continues]
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