Sarbanes-Oxley

Paper Summary:

This paper reports on the Sarbanes Oxley Act passed in the wake of the numerous corporate scandals of the late 1990s. Companies like Enron and Global Crossing were found to be using questionable methods of accounting and of inflating their worth thus deluding investors into thinking that the companies were stronger than they were. This law was proposed and supported because it changed certain accounting rules and was intended to eliminate corporate fraud and protect investors.

From the Paper:

"The Sarbanes-Oxley Act was passed in the wake of the numerous corporate scandals of the late 1990s as companies like Enron and Global Crossing were found to be using questionable methods of accounting and of inflating their worth, thus deluding investors into thinking that the companies were stronger than they were. The law was proposed and supported because it changed certain accounting rules and was intended to eliminate corporate fraud and protect investors. However, results have been mixed, and many see the Act as no more than an example of government interference that only adds costs and protects no one. The full name of the law is the Sarbanes-Oxley Corporate Reform Act. Defenders of the law see it as partially responsible for the recent improvement in the stock market because it restored investor confidence. The law was passed in 2002, backed by Senator Paul Sarbanes (D-Michigan) and Representative Michael J. Oxley (R-Ohio) to..."

More papers on Sarbanes-Oxley:

• Analytical Essay # 85468 : "Sarbanes-Oxley Act"
• Essay # 83873 : "The Sarbanes-Oxley Act"
• Essay # 72995 : "Sarbanes-Oxley Act's Costly Side"
• Analytical Essay # 71838 : "The Sarbanes-Oxley Act"

APA Citation:

MLA Citation: