The Sarbanes-Oxley Act (SOX) Was Passed in 2002 by the U.S

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The Answer is The Signature clause requires CEOs and CFOs to sign-off on financial statements. This in turn has led companies to do the same at multiple levels of management below the executive level. Costs have significantly exceeded expectations and disproportionately so for smaller organizations. Start-up firms in an attempt to avoid the legal and liability costs have opted to be purchased by larger existing companies rather than go public with IPOs. Firms may be more risk averse. International firms balked at having to meet the new standards especially when their existing markets may already provide more efficient and effective governance.

The Sarbanes-Oxley Act (SOX) Was Passed in 2002 by the U.S

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