The Sarbanes-Oxley Act improved corporate governance of MNCs because it:
A) made executives more accountable for verifying financial statements.
B) eliminated stock options as a form of compensation.
C) tied executive compensation to firm performance.
D) placed a limit on the amount of funds that managers can spend.

Question

​The Sarbanes-Oxley Act improved corporate governance of MNCs because it:
A) ​made executives more accountable for verifying financial statements.
B) ​eliminated stock options as a form of compensation.
C) ​tied executive compensation to firm performance.
D) ​placed a limit on the amount of funds that managers can spend.

Quizplus · Accepted Answer

The Sarbanes-Oxley Act strengthened corporate governance of MNCs by making executives personally responsible for ensuring the accuracy of financial statements. This accountability helped to prevent fraudulent activities and increased transparency in financial reporting. The Act did not eliminate stock options, tie executive compensation to firm performance or limit the amount of funds managers can spend.

​The Sarbanes-Oxley Act Improved Corporate Governance of MNCs Because It

The Sarbanes-Oxley Act Improved Corporate Governance of MNCs Because It