Mallory Factor continues to criticize Sarbanes-Oxley with a nonsensible metric
That Section 404 to which Cox referred has, according to one economist’s estimate, already cost the American economy about $1 trillion in direct and opportunity costs.
We have criticized this use of a Ivy Zhang paper as have many others. Many factors move the stock market besides this particular legislation. But if we really are going to be so naïve as to use the change in market values to measure the impact of Sarbanes-Oxley, then why aren’t we updating our analysis to suggest a benefit?