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Unformatted text preview: The key to any law is the written regulations (SEC), so any compromise will likely appear in the "regs," not in an amendment to the law. 2. Why might compliance with Sarbanes-Oxley enhance the flow of capital from U.S. investors to international firm's securities? While information is not free, anything that would foster confidence in boards and managers' intentions to work for shareholders' interest will enhance capital flows to corporate securities, domestic and foreign. Any practice that keeps boards of directors independent of managers and working for shareholders will enhance financial integration. As financial markets have developed through time, there have been times, especially after corporate fraud, market collapse, etc., where laws have demanded more information and "transparency" from companies. The Sarbanes-Oxley Act is intended to impact structure and practice in order that boards and managers work for shareholders rather than themselves....
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This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.
- Fall '09