Regulation and Intrusion

Paper Summary:

The paper discusses the 2002 legislation of Sarbanes-Oxley that regulates the accounting industry's own regulatory norms. The paper explains that despite the positive effects of such regulation, questions regarding the actual effectiveness of the broader, federal regulations over the previously established state regulations are raised. The paper emphasizes the effects that these federal regulations have had on the global markets and therefore, on the United States market as a whole. The paper concludes that increasing intrusion of federal law into how corporations go about their business, threatens to sacrifice the prime objective of corporate productivity and in turn, the productivity of our nation on a global scale.

Outline:
Introduction
The New Federal Regulation Of Corporate Governance
The Effect Of Federal Regulation On Existing State
Regulation Of Corporations
Conclusion

From the Paper:

"Recent years have seen a large number of accounting scandals and public outcry regarding executive compensation in the United States, however. As such, government bodies from the Securities and Exchange Commission to Congress to the courts have chipped in regarding the regulatory environment of business conducted within the U.S. The most high profile of these actions was the 2002 legislation of Sarbanes-Oxley, regulating the accounting industry's own regulatory norms. However, other regulatory measures have included executive compensation, the administration of mutual funds, and public disclosures of transactions have been increasingly regulated by the federal government, with undoubtedly the best of intentions."

Sample of Sources Used:

• Chandler, William III & Leo E. Strine, Jr., The New Federalism of the American Corporate Governance System: Preliminary Reflections of Two Residents of One Small State, 152 U. PA. L. REV. 953, 973-74 (2003)
• Choi, Stephen & Jill E. Fisch, How to Fix Wall Street: A Voucher Financing Proposal for Securities Intermediaries, 113 Yale L.J. 269, 273-74 (2003)
• Coffee, John Jr., Racing Towards the Top?: The Impact of Cross-Listings and Stock Market Competition on International Corporate Governance, 102 COLUM. L. REV. 1757, 1762-67 (2002)
• Daines, Robert. Does Delaware Law Improve Firm Value?, 62 J. FIN. ECON. 525, 529-35 (2001)
• EASTERBROOK, FRANK & DANIEL FISCHEL, THE ECONOMIC STRUCTURE OF CORPORATE LAW 2 (1991)

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