‘Sarbox hurting US stock exchanges’
American Stock Exchange chief criticises post-Enron rules
The corporate governance rules brought in after the collapse of Enron
have inhibited smaller companies from accessing US capital markets and reduced
the competitiveness of US stock exchanges, according to the chief executive of
the American Stock Exchange.
Writing in the FT, Neal Wolkoff, chairman and chief executive of the
American Stock Exchange, said while he was not in favour of dismantling the
Sarbanes-Oxley Act, he was ‘concerned about the effects of Sox on small
‘I see a growing trend of entrepreneurial companies deciding not to go public
or listed companies opting to delist because of the high costs of complying with
Section 404, which requires designing, documenting and auditing of financial
controls,’ Wolkoff said.
As a result, ‘many innovative companies are turning to foreign exchanges to
list. Before the implementation of Sox they would have automatically listed on a