We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

A Cost-Benefit Analysis

The whole doc is available only for registered users
  • Pages: 2
  • Word count: 317
  • Category: Bank Law

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

The article I reviewed was called The Sarbanes-Oxley Act: A Cost-Benefit Analysis Using the U.S. Banking Industry from authors from the Journal of Applied Business. The article discussed the detrimental effect the SOX Act has had on the American banking system. Reports collected by the Federal Reserve show that returns on assets (ROA) and returns on equity (ROE) for nonregistered (SEC reporting) banks were substantially better than the banks which were registered. According to the Harvard Law review of 2003 (Harvard Law Review 2003), over-regulation can become counterproductive. “Companies can become routinized in regulatory compliance in such a manner that they are adhering to the law, but not the spirit.” (Harvard Law Review 2003) On a personal note, why I understand why there needs to be regulation, I believe the government makes too many decisions without fully understanding the implications.

I see a lot of companies which follow the same course. Another good example is the Patriot Act, why the thought was genuine, the execution was not well thought out. I believe people or companies who try and illegally bypass the system should be penalized, but creating the strict processes contained in the SOC Act puts more burden on companies to prove they are upstanding businesses. I know my company has had to hire almost double the amount of accountants we would normally use, just to make sure our numbers are dead on correct. Our purchasing group dedicates days and hours reviewing open orders and trying to make sure the ERP system is accurate and up-to-date. It is not the tie in doing it once, but we are required to do it two and three times just to make sure.


Harvard Law Review, “The Good, the Bad, and Their Corporate Codes of Ethics: Enron, Sarbanes-Oxley, and the Problems with Legislating Good Behavior,” Vol. 1 16, No. 7. (May, 2003), pp. 2123-2141.

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59