Proponents of the Sarbanes-Oxley Act cite all of the following benefits EXCEPT
A)it should reduce the cost of capital.
B)it will encourage CEOs to take more risks.
C)it will promote more liquid markets.
D)it will result in higher equity prices.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act is designed to increase transparency and accountability in corporate governance, which should lead to improved market conditions such as lower cost of capital, more liquid markets, and potentially higher equity prices. However, it is not intended to encourage CEOs to take more risks, as the act emphasizes the importance of disclosing risks to investors and taking steps to mitigate them.

Proponents of the Sarbanes-Oxley Act Cite All of the Following