Using Sarbanes-Oxley Act to Reward Honest Corporations

25 Pages Posted: 27 Apr 2006

See all articles by Tamar Frankel

Tamar Frankel

Boston University School of Law

Date Written: April 20, 2006


Sarbanes-Oxley Act offers an opportunity to reward truthful corporations and their management, offering them a competitive advantage, and relieving them from some the Act's provisions. Corporate culture plays an important role in a corporation's honest behavior. One size does not fit all in matters of corporate culture. Sarbanes-Oxley Act provisions that impose on all corporations the same internal controls and governance rules impose unnecessary costs on corporations, requiring honest corporations to change one good habit for another. The article suggests that relief from some of the internal controls rules imposed in the Sarbanes-Oxley Act might be an effective way for rewarding corporations for their honest behavior rather than punishing them.

Keywords: Sarbanes-Oxley, corporate culture

JEL Classification: K22, K42

Suggested Citation

Frankel, Tamar, Using Sarbanes-Oxley Act to Reward Honest Corporations (April 20, 2006). Boston Univ. School of Law Working Paper No. 06-08, Available at SSRN: or

Tamar Frankel (Contact Author)

Boston University School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States
617-353-3773 (Phone)
617-353-3077 (Fax)

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