Nicholas ConnollyBus 101Dr. Barr1/27/2009Study: Sarbanes-Oxley costs burden small firms: By Chris ReidyIn this article, Sarbanes-Oxley has been putting serious pressure on small firms to compete in the market because of the large compliance costs. The state of Massachusetts relies on small biotech and life science firms to boost their economy and because of Sarbanes-Oxley’s fees; these small firms may go out of business because they cannot keep up financially. The Sarbanes-Oxley law was suppose to improve corporate governance and accountability, but because of their high compliance costs, the small firms are unable to thrive and do well in the market. The reason why these small firms will have a tough time in the stock market is because starts-ups will take more time, ultimately stopping them from making money that they could have if their shares were sold out to the public. The chamber study noted that, in some cases the “compliance costs can represent 2.5 percent or more of a small firm’s annual revenue”. The SEC is looking
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