School of Business
Primary Subject Area
Business Administration, Accounting
Young, Cassie A., "The Effects of Sarbanes-Oxley on Small-Capital and Foreign Corporations" (2008). Senior Honors Theses. 47.
The Sarbanes-Oxley Act of 2002 was instated in response to extensive audit failures and the resulting lack of confidence in the American public market. However, the regulations can be costly and small-capital and foreign companies are seeking to be exempt from the regulations altogether. Through extensive research, I have determined the validity of these arguments and the possible effects of these companies not complying with Sarbanes-Oxley. I have found that while there are initial costs incurred to meet the regulation requirements, the benefits to the public market, investors, and the companies themselves outweigh them considerably. I have documented this evidence and also given tips on creating the most value out of Sarbanes-Oxley in the most cost-effective manner.