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Friday, October 21, 2005
What's a Sarbox? Say Many Shareholders
More than three years after the passage of the Sarbanes-Oxley Act, investors are apparently not too confident that the new governance rules are reining in inappropriate behavior by corporate executives.
According to a new poll conducted by The Wall Street Journal and Harris Interactive, 55 percent of U.S. investors believe that financial and accounting regulations governing publicly held companies are too lenient. That figure rises to 77 percent for male investors ages 45 to 54.
Further, many investors are not blindly supporting companies they deem to be unresponsive to shareholders: 30 percent say they have reduced or divested their holdings in a company as a result of poor corporate governance.
The results are based on an online survey of 2,061 U.S. adults conducted in early October.
According to the survey, only one-quarter of investors feel that Sarbox has made the communication of financial information by companies "much more" or "somewhat more" transparent. What's more, 11 percent believe the legislation has actually made communication less transparent.
posted by Anonymous @ 8:25 AM
 
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