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Few CEOs believe Sarbanes-Oxley is benefiting investors

Few CEOs believe Sarbanes-Oxley is benefiting investors

by Rick Turoczy on August 16, 2006

Few chief executive officers believe investors are better protected by the Sarbanes-Oxley Act, a survey by NYSE Group Inc. said.

The survey by of CEOs at more than 200 companies found that 6 percent said the accounting and corporate governance law, as well as NYSE governance rules produce benefits for investors. Increased costs on compliance were cited as a concern by 97 percent of those surveyed.

Companies have complained that the cost of complying with regulations such as Sarbanes-Oxley are wiping out a lot of their profits, and driving foreign companies away from U.S. capital markets.

Few CEOs believe Sarbanes-Oxley is benefiting investors

{ 1 comment… read it below or add one }

Bob Benoit September 24, 2006 at 7:11 pm

Have you considered the report issued by Lord & Benoit of ALL of the calendar year filers that completed two Section 404 audits. It showed market beating gains of 28% compared to an 18% increase in the Russell 3000 index over the same period. These were companies with good internal controls. Companies with poor internal controls dropped by 6% over the same period.

The report may be downloaded free on charge on the Lord & Benoit website called http://www.section404.org

http://www.section404.org/pdf/Lord%20&%20Benoit%20Report%20Do%20the%20Benefits%20of%20404%20Exceed%20the%20Cost.pdf

This report was also reported on by the Wall Street Journal on May 8, 2006, called “Checks on Internal Controls Pay”.

http://online.wsj.com/article/SB114705428933346360-email.html

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