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Article: Sarbanes-Oxley: effects on financial transparency.
- Article from:
- SAM Advanced Management Journal
- Article date:
- January 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Society for the Advancement of Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
During 2002, a number of high-profile accounting frauds and misstatements, some of unprecedented scale, dominated the headlines. The problems at Enron, WorldCom, Adelphia, Tyco, and Global Crossing were practically daily news, as was the rapid fall of Arthur Anderson. A report issued by the General Accounting Office in October 2002 stated that one out of every 10 listed public companies restated its earnings during the last five years, while a recent Gallup poll indicated that 70% of U.S. investors said that corporate accounting issues were hurting the investment climate "a lot" (Atkins, 2002a).
Against this backdrop, Congress began hearings ...