delisting

Does Sarbanes Oxley really inhibit small companies?

Tue, 02 Oct 2007 06:59:59 -0400

Sarbanes Oxley gets tossed around a lot as the reason for small-company woes. Anytime there's a delisting, you can bet "the additional costs of Sarbanes Oxley" gets ritualistically trotted out. But Silicon Valley and much the tech industry is thriving all over again. Investment bankers have certainly taken notice. These companies of course are not going public in the volume they did in the dot.com era, but I think we can agree that's a good thing. These days, if you are going to go public these days, you have to have your ship in top shape. Earnings certainly helps. Perhaps that's how it should be. In the end, investors just might appreciate it. I haven't seen any rigorous analyses of aftermarket performance since Sarbox became law. But it would be interesting to see, though isolating the effects of the law may be difficult.

For more:
- here's an article from EDN

Related articles:
- More on small accounting companies and Sarbox
- Small company compliance timeline issue heat up
- More AS5 tips for small companies

Get ready for a common Europe-U.S. standard

Mon, 07 May 2007 20:01:39 -0400

A common European-U.S. accounting standard by 2009? That's the goal of the SEC, and chairman Chris Cox says it is feasible. We'll likely see a lot hand-wringing between now and then, especially on the other side of the pond. European companies have been rather paranoid about the emergence of Sarbanes-Oxley-like rules for a year now and this will only stoke their concerns, despite Europe-based moves to toughen standards. The SEC is already taking pains to note that it is sensitive to their concerns and has modified Sarbox in ways favorable to foreign companies. Note the recent delisting changes. SEC is also willing to give foreign companies a choice of the IFRS international standards or the U.S. GAAP standard. Pretty soon, it will decide whether to give the same choice to U.S. companies.

For more:
- here's a MarketWatch article

ALSO NOTED: New rules on pay disclosure gain; More foreign CEOs consider delisting from US marts;

Mon, 31 Jul 2006 20:01:38 -0400

> The new rules on executive pay disclosure has drawn a lot of attention. Some argue that it represents the biggest proxy statement change in 14 years. Article The new rules fall short of the so-called Milken rule, though more non-executive disclosure is required. Article

> A new survey has found that more than half the chairmen of foreign companies listed in the U.S. would consider delisting because of Sarbanes-Oxley. About 70 percent of chairman of non-listed companies said the law would dissuade them from seeking a U.S. listing. Article

> SEC bans Ex-Deloitte auditor of Adelphia. Article

> PCAOB advises accounting firms on options accounting. Article

> Finance MBAs are more popular these days; some credit Sarbox for the surge in demand for financial managers. Survey

> One executive got really lucky with options. Article

> Survey: More CFOs confident about their financial reporting. Article

And Finally... The Pop-tart problem. Article

Pro-Sarbox propaganda from the government

Mon, 24 Jul 2006 20:01:39 -0400

The state department would like to remind foreign companies that there are benefits to Sarbanes-Oxley as well as costs. The pitch goes like this: Companies, especially from weak-oversight countries (you know who you are!), can show the U.S. and the world that they are world-class simply by complying. That can boost their standing in the markets and lower their capital costs. The State Department notes a study that suggests foreign firms can save money when they dual list shares on either the NYSE or Nasdaq and on a home-country exchange. These arguments are not wacky. In fact, one survey found more than 72 percent of Asian and 81 percent of Latin American firms believe the benefits out weight the costs. Not so in Europe, where nearly 20 percent of companies will consider delisting in the U.S.

> Here's the article from the U.S. State Department.

ALSO NOTED: Globalization of Sarbox continues; Pressure mounts in Congress;

Mon, 17 Jul 2006 20:01:38 -0400

> As the AICPA moves to North Carolina, people are pondering its significance in a post-Sarbox world. Article

> We've discussed the global aspects of Sarbanes-Oxley at length. Forbes has a nice article that summarizes the key issues. Interesting point: 17 percent of foreign companies would consider delisting from U.S. exchanges. Article

> Did Sarbox chase Rosneft to London? Article

> Chinese companies listed in the U.S. chafe under Sarbanes-Oxley deadline. Article Same goes for Korean firms. Article

> Pressure for reform mounts in Congress. The Financial Services Forum assembled a senior treasury official and three House members for a debate on Sarbanes-Oxley. Rep. Tom Feeney (R-FL) was an invitee. Article

> Background on the three U.K. bankers extradited to the U.S. Article

> Ex-partners sue KPMG for legal fees related to tax-shelter probe. Article

> Sign of the times? Shares of Resource Connection, a Sarbanes-Oxley consulting firm, tumble. Article

And Finally... Best places to live, 2006. Article