Independent financial experts: From wished for to wistful thinking
Abstract
The aftermath of the Enron collapse included Congressional legislation known as the Sarbanes‐Oxley Act (SOX), which was rushed into law on July 29, 2002, by President Bush. This legislation, aimed at restoring confidence in the financial markets, addresses many aspects of corporate governance. This article addresses the audit committee provisions of SOX, particularly the requirements for independent membership and financial expertise. The article outlines the legislative requirements and then discusses the possible effects of this ‘patch‐up’. Is it too little too late and how long will the patch last?
Keywords
Citation
Burrowes, A. and Hendricks, A. (2005), "Independent financial experts: From wished for to wistful thinking", Managerial Finance, Vol. 31 No. 9, pp. 52-62. https://doi.org/10.1108/03074350510769866
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited