When the Sarbanes-Oxley Act that established new accounting rules was passed, analysts suggested that the new rules would not improve protections for the investing public, but it would result in more work for accountants. If the professors are right, these regulations are an example of:

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act, if it results in more work for accountants without improving protections for the investing public, could be seen as government failure, where government intervention does not lead to the intended beneficial outcomes.

When the Sarbanes-Oxley Act That Established New Accounting Rules Was