Sarbanes-Oxley: Does It Help to Distinguish Good CFOs From Bad Ones?

Rehbein, Kathleen
November 2010
Academy of Management Perspectives;Nov2010, Vol. 24 Issue 4, p90
Academic Journal
The article focuses on the U.S. Sarbanes-Oxley Act (SOX) concerning its effect on compensation and turnover rates for chief financial officers (CFO) and on corporate internal control reforms. It states that CFOs play a critical role in the development of a company's financial reporting and on decisions about voluntary financial disclosures. It mentions that there was not a significant change in the compensation packages of CFOs between the pre- and post-SOX period. It comments that comparing and contrasting businesses that report accounting issues, CFOs at companies that had strong internal controls recieved increases in compensation in the post-SOX period, while CFOs in companies with problems in internal controls suffered a reduction in compensation packages.


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