The Sarbanes-Oxley Act: Legal Implications and Research Opportunities
26 Pages Posted: 28 Nov 2006
Abstract
Congress passed the Sarbanes Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Anderson LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit committee members, as well as other participants in the financial reporting process. We evaluate the potential legal implications of some of the Act's major provisions and anticipate participants' likely responses. Our evaluation suggests that these provisions will significantly change behavior, increase compliance costs and alter the legal landscape. We also identify promising avenues for future research in light of the new landscape.
Keywords: Sarbanes-Oxley Act, legal implications, future research
JEL Classification: G38, G34, M41, M49
Suggested Citation: Suggested Citation
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