As I mentioned before on Blogicology (good luck finding the exact post), the Sarbanes-Oxley Act of 2002 is mostly seen as a market restriction. Once again, another commentary on Nightly Business Report – this time from Glenn Hubbard, Columbia University – who articulates the impedance on competitiveness that the Sarbanes-Oxley Act imposes on US capital markets.
I wonder where the balance lies for corporate reporting and just how burdensome it is on certain corporations. Is it necessary for every corporation or industry? Is it effective? Or, is it effective for all different types of business? Are there any industries that the Sarbanes-Oxley Act proves to be ineffective?