Sarbanes-Oxley Dissertation 2654

  • Im in the midst of completing my final year dissertation in the UK and am seeking out some people to who are have an association with the SOX,(Preferably someone working in a company that is subject to it through the U.S capital market) to answer a few quick questions and give there opinions.
    Question-Does the Act put the U.S financial markets at a competitive disadvantage to foreign markets such as the LSE?
    Question-How had it affected listing trend since the Act came in? Are more and more companies going to LSE?
    Any help I can get would be much appreciated, just jot down your thoughts and (position) if possible.
    I look forward to hearing from you.

  • Basically the question of the effect of the Sarbanes-Oxley Act on the attractiveness of the public capital market of the USA in comparison with the public capital market in the UK has already been answered by research by Joseph D. Piotroski and Suraj Srinivasan in the Journal of Accounting Research Vol. 46, No. 2 May 2008. They look at foreign firms that listed on the NYSE, NASDAQ or the LSE between June 1, 1995 and June 30, 2006. There is no use in reinventing the wheel unless you can improve the research they already did. You could simply copy their methodology and use listing events after June 30, 2006 or use a superior methodology. In my opinion, their methodology is already pretty sophisticated. The costs and burdens of an audit of internal control over financial reporting were known for US issuers for fiscal years ending on December 31, 2004. Foreign private issuers that are large accelerated filers started with fiscal years ending on December 31, 2006 (i.e. published in spring 2007. You could look whether having actual cost and burden experiences of non-US issuers changed their listing behaviour, but they already knew the impact on US companies back in June 2006. Your professor should have pointed out this article to you, but probably your initial literature research already identified it.

  • Hi Jordan and welcome to the forums 🙂
    gmerkl has a lot of expertise and these links might help:
    http-and-#58;// of Accounting Research Vol 46 May 2008 Srinivasan

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