SarbanesSarbanes.doc

Sarbanes–Oxley and corporate risk-taking 1 the content of the article. This article illustrate SOX have the big affect to public corporate of America，the act which have a request is to force firm through new requirements,backed by stiff penalties,,meanwhile,due to this law,it ,need public corporate must submit a report which is need have a signature of chief executives and chief,this report also explain the main wrong in the finance management other important manangement.in addition ,it is have a much important to auditors,under404 of the act ,executives must prove that the have established and an adequate internal structure for financial reporting.this request may prove the accurancy of financial accountants and personal liability ,after SOX “the coporate need spend sum of ther capital and RD expenditures it decline significantly for US firms compared with non-US FIRMS AFTER SOX”(Leonce L. Bargeron, Kenneth M. Lehn , Chad J. Zutter 2010) The section 2 introuduce the SOX and corporate rise-taking which is say the request to the members of SOX ,,it also need enhance outside audits independents and effectives,Indeed ,as moizer(1991)points out ,搕here is more general argument which states that the corporate auditor will always act independently in a state of eSnlightened self –interest involvinf a necessary balancing of public and self-interests.” After that ,SOX also have a request that the companies adopt rule to evaluate and disclose the adequacy of their internal financial controls in annual reports（404）Each listed company must issue a self report disclosed weaknesses, external audit independence and a report ，the section 3 is some samples and data. For example 2 ,due to the low-risk assest has a reduction in corporate risk-taking after SOX ,table3 Hence, (Table 3) “ provide corroborating support for th premise that SOX has discouraged corporate risk-taking by US ?rms relative to non-US ?rms in similar industries and of similar size.” Table 4 indicate that ther