USING SARBANES-OXLEY ACT TO REWARD HONEST CORPORATIONS

Tamar Frankel

Boston University School of Law Working Paper 06-08

Abstract
Sarbanes-Oxley Act offers an opportunity to reward truthful corporations and their management, offering them a competitive advantage, and relieving them from some the Act’s provisions. Corporate culture plays an important role in a corporation’s honest behavior. One size does not fit all in matters of corporate culture. Sarbanes- Oxley Act provisions that impose on all corporations the same internal controls and governance rules impose unnecessary costs on corporations, requiring honest corporations to change one good habit for another. The article suggests that relief from some of the internal controls rules imposed in the Sarbanes-Oxley Act might be an effective way for rewarding corporations for their honest behavior rather than punishing them.


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Tamar Frankel Contact Information

tfrankel@bu.edu
Boston University School of Law
765 Commonwealth Ave
Boston, MA 02215
USA
(617) 353-3773


Presentation and Publication Information:

 

SSRN:

http://ssrn.com/abstract=897783


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