Advanced Search
MyIDEAS: Login

Waste makes haste: Sarbanes-Oxley, competitiveness and the subprime crisis

Contents:

Author Info

  • Donald Nordberg
Registered author(s):

    Abstract

    Purpose – The passage of the Sarbanes-Oxley Act of 2002 followed hard on the collapses of Enron and WorldCom. Waste makes haste. Official reports for US government agencies worried that the legislation may have impaired New York's competitiveness as a venue for international capital transactions. But a threat from a seemingly different direction – the subprime shakeout – exposed bigger issues. This paper aims to raise questions about many of the assumptions made in the discourse about the relative competitiveness of US and European capital markets. Design/methodology/approach – Building on Healy and Palepu's analysis of Enron, it compares the root issues at Enron with a preliminary view of the sources of the subprime crisis to build an outline for regulatory response. Findings – Remedies in Sarbanes-Oxley failed to address several of the ailments in evidence in Enron. The haste of making “Sarbox” may have led us to waste an opportunity to prevent or reduce the impact of the subprime debacle. Originality/value – The comparison of the seemingly unrelated cases reveals similar ethical gaps and regulatory lapses, suggesting a different type of legislative and regulatory response may be needed. It makes suggestions for further research to guide future policymaking.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=80FFFBBE47F7296810E50526098E60BF?contentType=Article&contentId=1752692
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Journal of Financial Regulation and Compliance.

    Volume (Year): 16 (2008)
    Issue (Month): 4 (November)
    Pages: 365-383

    as in new window
    Handle: RePEc:eme:jfrcpp:v:16:y:2008:i:4:p:365-383

    Contact details of provider:
    Web page: http://www.emeraldinsight.com

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Email:
    Web: http://www.emeraldinsight.com/jfrc.htm

    Related research

    Keywords: Capital markets; Competitive strategy; Corporate governance; Regulation; United States of America;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Nicholas V. Vakkur & Zulma J. Herrera, 2011. "Sarbanes Oxley's impact upon investor-relevant risk types," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 19(3), pages 254-270, July.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eme:jfrcpp:v:16:y:2008:i:4:p:365-383. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.