Reform law chills U.S. risk-taking, study finds
Published by claudia June 21st, 2007 in SOX, North America, Accounting rules, Sarbox Tags: american enterprise institute, corporate reform, public companies, risk taking, sarbanes oxley.Says Sarbanes-Oxley creates fear of litigation
A study of 4,000 U.S. companies shows the Sarbanes-Oxley corporate reform law has had a chilling effect on risk-taking as many companies seek to conserve cash instead of developing new products or services, a University of Pittsburgh researcher said yesterday.
U.S. companies significantly cut research and development spending and capital expenditures, while at the same time increasing cash holdings compared with their U.K. counterparts in the period after the 2002 law, the study found.
“I think there is a cause and effect relationship and it runs through the newly empowered independent majorities on the boards of directors of public companies,” said Peter Wallison, a senior fellow at the American Enterprise Institute, a think-tank with close ties to the administration of George W. Bush.
Some members of an AEI discussion panel suggested Sarbanes-Oxley, or SOX, had the effect of introducing independent but risk-adverse directors, as well as creating a fear of litigation.
The Star.com: Reform law chills U.S. risk-taking, study finds
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SOX can be repealed. With the right President. Please read:
I just read the following article. I think it is the MOST important item in the upcoming election. How many others are as sick of Sarbox as I am? It is costing me a fortune and for what??? Here is a guy running for President that is against this Act and will work to repeal it. Ron Paul. Read this: http://www.lewrockwell.com/orig8/haman2.html
Then go to the home page and find the “Ron Paul file” where you can read a lot of other stuff about him. He is so popular on the Internet you can get lost in the websites his supporters have put up for him, but the official campaign website is http://www.ronpaul2008.com I sure haven’t heard another candidate talk about this albatross around our necks. He even voted against in the first place and tried to get it repealed once before. He has been in Congress for ten terms. So this guy really means it. Just to imagine being free of 404…. chills.
Anyway, I thought it was a great article.
See also:
http://www.house.gov/paul/congrec/co…5/cr041405.htm
http://www.approva.net/audittrail/20…5-years-later/
http://www.house.gov/paul/congrec/co…2/cr020402.htm