Knowledge Center
 White Papers
 Data Sheets
 eNewsletter
 Advisors Research
 
   

Friday, April 29, 2005

Worthwhile legislation

the Sarbanes-Oxley Act has proven costly to public companies and has reduced their willingness to take risks, the legislation was necessary to maintain the perception of fairness in America’s equity markets, according to Raj Aggarwal, Kent State University’s chair of corporate finance.

The act, passed by Congress in 2002 in the wake of corporate accounting scandals at Enron and Worldcom, will cost businesses about $4.4 million on average this year, Dr. Aggarwal said today at a meeting of the Cleveland chapter of the CFA Society, a group that promotes ethical practices among financial analysts.

That figure applies to companies with about $5 billion in annual sales. He said the cost probably would go down by as much as 25% next year and in subsequent years as companies gain familiarity with the act’s requirements.

After the value of many people’s pensions crashed from holding stocks like Enron, “Congress had to do something,” Dr. Aggarwal said. However, “Congress is not the most informed decision maker when it comes to regulating business,” he said.

posted by Brian Moran @ 2:57 PM   7 comments

7 Comments:
At 2:51 PM, Blogger Josh said...

Great information here! I'm going to bookmark this page. Check out my computer equipment blog sometime.

 
At 7:06 PM, Blogger Henryrmsy said...

Thanks for the look see at your blog. For me right livlihood is the name of the game. So doing allowed me to collect what I have on display at http://www.rollingems.com. Have a good day.

 
At 3:05 AM, Blogger Frenchy said...

Genie and the Taliban

Three guys: a Canadian, Osama bin Laden, and Uncle Sam are out walking together one day. They come across a lantern and a genie pops out of it.
"I will give each of you each one wish. That's three wishes total," says the genie.

The Canadian says, "I'm a farmer, my dad was a farmer, and my son will also farm. I want the land to be forever fertile in Canada."

With a blink of the genie's eye, *POOF* the land in Canada was forever made fertile for farming.

Bin Laden was amazed, so he said, "I want a wall around Afghanistan, so that no infidels, Jews, or Americans can come into our precious state."

Again, with a blink of the genie's eye, *POOF* there was a huge wall around Afghanistan.

"Uncle Sam" (A former civil engineer), asks, "I'm very curious. Please tell me more about this wall."

The Genie explains, "Well, it's about 15,000 feet high, 500 feet thick, and completely surrounds the country; nothing can get in or out - it's virtually impenetrable."

Uncle Sam says, "Fill it with water."

 
At 5:07 PM, Blogger Henryrmsy said...

Thanks for the look see at your blog. For me right livelihood is the name of the game. So doing allowed me to collect what I have on display at http://www.rollingems.com. Have a good day.

 
At 11:32 PM, Blogger paymaster said...

Hi Blogger,

As a result of reading your blog "Worthwhile legislation", I think you will discover my site on Highest Wages In All States will be a great help.

To illustrate our diverse range of wages information, here are some of the latest search terms that located our site ...

Business Operations Specialists Wages
Claims Adjustors Wages
Examiners & Investigators Wages
Compensation Benefits Specialists Wages
Job Analysis Specialists Wages
Compliance Officers Wages
Cost Estimators Wages.

We have over 200 "have to read" career and wages articles in addition to many other interesting subjects in our Wages For All Occupations site.

Best Regards
Emily

 
At 9:21 AM, Blogger Matt said...

Voodoo Enronomics

Feudalism: You have two cows. Your lord takes some of the milk.
Fascism: You have two cows. The government takes both, hires you to take care of them and sells you the milk.

Communism: You have two cows. You must take care of them, but the government takes all the milk.

Capitalism: You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income.

Enron Capitalism: You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt-equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred through an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The Enron annual report says the company owns eight cows, with an option on one more.

 
At 1:19 AM, Blogger Accounting Center said...

Hi thanks for your blog, I liked it! I also have a blog/site about accounting certification
that covers accounting certification
related stuff. Please feel free to visit.

 

Post a Comment

<< Home

 

Powered by Blogger