Corporate governance: The evolution of the Sarbanes‐Oxley Act and its impact on corporate America

Abstract

Purpose

The purpose of this paper is to evaluate recent corporate failures and their effect on financial statements, as well as the measures being taken to rebuild trust in corporate America.

Design/methodology/approach

Looks at how corporate governance in the USA is undergoing comprehensive reforms, particularly the significant Sarbanes‐Oxley Act.

Findings

Measures to rebuild trust in corporate America are being implemented.

Originality/value

The paper is of value by showing how the Sarbanes‐Oxley Act is by far is the most important legislative act governing business in the beginning of the twenty‐first century.

Citation

Alkhafaji, A.F. (2007), "Corporate governance: The evolution of the Sarbanes‐Oxley Act and its impact on corporate America", Competitiveness Review, Vol. 17 No. 3, pp. 193-202. https://doi.org/10.1108/10595420710833598