Sarbanes-Oxley Elicits Doubt Among Executives
The 32nd annual board of directors study, released by Sarbanes-Oxley. The regulations, passed into law in 2002, were intended to stem the tide of accounting and financial malfeasance at the highest levels of American business. Four years later, however, 58% of company directors feel that the regulations have only served to make company boards overly cautious, to the detriment of business operations.
According to Charles King, head of Korn/Ferry, Although gross corporate misconduct has necessitated recent landmark regulations, there is a growing contention that the impact of these rules has been negative.
The study further showed that 72% of American directors who responded feel that Sarbanes-Oxley regulations have served to make their boards overly cautious, with 65% of directors of U.S.-listed Japanese boards agreeing with that sentiment.