Efficiency of Sarbanes-Oxley act: willingness-to-comply and agency problems

Abstract

Using the events that occurred in a series of corporate transactions in the US (Nwogugu (2004)), this article analyzes the efficiency of the Sarbanes-Oxley Act (“SOX”; 2002, USA) and introduces new quantitative models of Willingness-To-Comply which is a statistical measure of the employee/company’s propensity to comply with SOX and similar regulations.