Small Companies Competiveness and SOX
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Sarbanes-Oxley is hitting hard the competiveness of small public companies. The opinion comes from Financial Executives International (FEI). They alos called for more practical solutions at the same time protection for investors. The announcements are just before a meeting of the Security and Exchange Commission's Advisory Committee on Smaller Public Companies. The SEC is due to consider changes to current rules for smaller companies. "Richard Brounstein, chairman of the FEI Small Public Company Task Force said ""The U.S. economy depends on smaller companies, particularly for innovation and new job creation"" ..."" But as currently designed, the implementation of Section 404 of Sarbanes-Oxley drains the limited resources of small companies particularly hard. The efforts and recommendations of the SEC's Advisory Committee to develop a better approach represent a worthwhile and important investment in the future of smaller public companies to ensure they are not unduly disadvantaged."" According to the SEC Office of Economic Analysis, companies with less than $700 million in market capitalization make up about 80% of all public companies, but only 6% of total stock market value. "According to FEI research audit fees have jumped 71% from Section 404 work at companies with market caps of $25m-$99m. The largest companies, (those with market caps over $500m saw audit fees increase by only 47%.) Evidence maybe that small firms are disproportionately harmed by SOX.
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Similar Areas Selected Books Keywords Sarbanes-Oxley and small companies Financial Executives International Small Public Company Task Force Section 404 and small companies
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