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The Korea Times : Companies Under Pressure by Strict US Exchange Rules

The Korea Times : Companies Under Pressure by Strict US Exchange Rules

by Rick Turoczy on September 11, 2006

South Korean firms listed on U.S. exchanges are facing growing costs due to stricter accounting rules and some of them consider leaving the markets, according to Financial Supervisory Service (FSS) yesterday.

Not only Korean but also many other non-U.S. firms saw costs to maintain their listing on the U.S. markets rise after the implementation of Sarbanes-Oxley Act, according to FSS official Jung Young-won.

The Korea Times : Companies Under Pressure by Strict US Exchange Rules

{ 2 comments… read them below or add one }

M.D. Fatwa September 11, 2006 at 2:47 pm

Surprisingly, a report just put out by the SEC’s Office of International Affairs shows that a large number of major foreign markets have adopted many Sarbanes-Oxley provisions as well–including Japan and China. Hard to imagine that Korea won’t follow suit.

See story here

Toby Lucich September 11, 2006 at 10:30 pm

It should come as little surprise that capital markets around the globe are seeking to align on a norm for “reporting transparency”. Higher quality information – subject to oversight by an independent verifier – goes a long way toward reducing the investor’s risks of committing capital.

Audited financial reports are the most basiccost of entry for publicly traded companies. To get the funding or liquidity, a company needs to be verified.

I find emerging capital market adoption to be a strong play toward lowering cost-effective access to capital in tertiary markets. It will be interesting to see how this movement affects the flow of investor dollars.
-tl

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