woman
Support phones:
homeReloadContact Us
Home About Us Our Guarantees Beware Our Prices Discounts Order Now Blog FAQ Testimonials Sample essays Contact Us
main menu
Home
About Us
Our Guarantees
How it works
Beware
Our Prices
Discounts
Order Now
Blog
FAQ
Testimonials (1034)
Sample essays
Contact Us
discounts
you save
Type of assignment:
Urgency:
Writer level:
Cost per page:
Pages:
Total without discount:
sample essays
Analytical Essays
Application Essays
Architecture Essays
Argument Essays
Argumentative Essays
Art Essays
Business Essays
Case Studies Essays
Communication and Media Essays
Comparison Essays
Computer Technologies Essays
Controversial Essays
Critical Essays
Definition Essays
Economics Essays
Education Essays
Geography Essays
History Essays
Justice Essays
Law Essays
Life Essays
Literature Essays
Marketing Essays
Medicine Essays
Nursing Essays
Personal Essays
Philosophy Essays
Political science Essays
Politics Essays
Psychology Essays
Religion Essays
Sociology Essays
Technology Essays
Term Papers Essays
World Literature Essays

← Hispanics Immigration into the USNew and Old Punishment in Connecticut →
Live Chat

Custom U.S.Corporate Governance essay paper sample

Buy custom U.S.Corporate Governance essay paper cheap

In the recent years, the issue of corporate governance has increasingly become a subject of scrutiny by the stakeholders in any given organisation. Further, it has become mandatory for board of directors in most firms to comply and deploy set of financial management standards, in order to enhance short and long term sustainability of their firms. As argued by Goelzer (2005), corporate governance is the system through which firms are controlled and directed. This entails a set of association between management and the stakeholders in mitigating conflict of interest to the stakeholders. In countries, such as the U.S. and U.K., corporate governance practises are not regulated by any given statute, but instead they are affected by corporate law, the governing instruments, and federal securities laws among others notable legislations. This paper will critically evaluate on the ways in which Sarbanes-Oxley Act (SOX) and the PCAOB (Public Company Accounting Oversight Board) has affected corporate governance of companies operating in the U.S.

The Sarbanes-Oxley Act (SOX) is a law passed by the U.S. congress on July 2002. This was in response to an increasing number of major accounting and corporate scandals, such as those which affected WorldCom, Tyco international, and Enron among other notable firms. Rand Corporation (2011) indicates that, this legislation was aimed at raising regulation and oversight of accounting profession as well as strengthening the level of transparency in financial audits and corporate governance. The notable provisions of the SOX include:

  • establishment of the Public Company Accounting Oversight Board (PCAOB) to lay down auditing standards
  • setting stricter crimes penalties regarding corporate fraud
  • setting detailed as well as timely disclosures of the financial information

It is notable that the SOX legislation was quickly passed by the Senate. Due to this, the cost of compliance has in most cases exceeded the benefits obtained from its enactment, especially the small and foreign firms (D’Aquila, 2007). For instance, it is estimated that on annual basis, the total private cost spent towards complying with the Sarbanes-Oxley legislations is more than $ 2.8 trillion. Studies have indicated that 80% of this high cost originates from the raised auditing cost, in order to comply with the SOX law. Consequently, private firms have been motivated to go public and vice-versa, with an aim of avoiding the compliance costs. Further, foreign firms have drastically shunned investing in the U.S. financial markets, in order to stay clear of this particular legislation.

As argued by Koehn & DelVecchio (2006), it is clear that the additional benefits obtained from improved disclosures do not at all justify additional disclosure costs at all. Menon and Williams (2001) contend that the SOX was a costly and unnecessary intrusion by the U.S. government into corporate management. As indicated above, the legislation place most of the U.S. corporations at an enormously competitive disadvantage as compared to their counterparts in foreign countries, thus driving businesses out of the U.S.  Marshall (2006) indicates that the additional compliance cost should be catered for by the federal government, in order to encourage foreign firms and small businesses register on the NYSE (New York Stock Exchange).  It is clear that by tightening disclosure rules, only the well established firms have been able to benefit from the Sarbanes-Oxley legislations. This is due to the fact that the regulation has made the small firms to derive reduced average benefits and higher average costs as compared to the well established firms.

In conclusion, the Sarbanes-Oxley Act should be carefully re-evaluated, in order to ensure fair trading grounds for all companies in the U.S. regardless of their market share (Hayes and Wang, 2004).

Buy custom U.S.Corporate Governance essay paper cheap

Buy essayHesitating

Related essays

  1. New and Old Punishment in Connecticut
  2. The Juvenile Delinquency
  3. Hispanics Immigration into the US
  4. King Rodney
Email
Password
 
order now
chat off
our advantages
300 Words per page
12 pt Times New Roman double-spaced
MBA and PhD Writers
Relevant and up-to-date sources
US Writers
100% Confidentiality Guarantee
24/7 Support
24/7 Live Chat
Direct Contact with Writer
Flexible Discount Program
ANY Difficulty Level!
current status
7 chat / phone operators online at the moment
764 writers active
19457 writers in the database
9 new writers passed exam this week
26436 pages written
8259117 words written
8.5 out of 10 current average quality score
97% satisfied customers
current status
Blog categories
Academic Assistance
Analysis Essay
Art
College Essay
Samples
Student's Life
Writing an Essay
Writing Helper
current status
Latest posts
School Uniforms Eternal Problem
Four Surprising Meanings of the Word ‘Bachelor’
4 Ways to Train both Reading and Writing at the Same Time
How to Write a Classification Essay Well?
Basic Essay Types All Students Must Know
current status



  • Paypal
 

Get

15%

off your first

custom essay order.

Order now

PRICES
from $12.99/PAGE

X