Western Washington University Western Washington University

Seminar in Management:
Corporate Governance
Spring 2011

------------------------------------------------------------------------- --------------------------------

Discussion Questions for Constituencies: Sarbanes-Oxley:

1. What are the benefits of the Sarbanes-Oxley Act (intended and unintended benefits)?

2. What are the unintended consequences of SOX?
a. How does it affect economic activity?

3. Should the requirements of SOX be diluted in order to lower the cost of compliance?
a. If so, which parts should be diluted?

4. There has been a lot of debate about SOX going too far in terms of requirements overall. Do you think it went too far or are there aspects of it where it did not go far enough?

5. Is SOX an efficient solution? For instance, one effect of the Sarbanes-Oxley Act is that listing requirements on the NASDAQ and NYSE became stricter. Would it have been sufficient to only change the listing requirements instead of requiring the changes as well as listing them in the act?
a. If not, what does an efficient solution entail?

6. Why would a private company or a nonprofit comply with SOX regulations if they aren t require to do so?

7. Where is SOX going to go in the future? Will it still be around?

8. What do you observe in corporate behavior today that invites regulation?

Return to Professor Dunn's home page.