CCEG Research Agenda

The "Real" Effects of Sarbanes-Oxley

Project Leader: Nicholas Vakkur

An unanticipated and controversial outcome of Sarbanes-Oxley is that CEOs must now keenly examine the inner workings of their entire operation. This is especially true as it relates to supply chain operations—such as distribution, inventory, purchasing, international operations—and the financial controls of key outsourcing partners. Although research has evaluated the financial costs of compliance, the indirect costs of implementing these practices have not been analyzed. Researchers will conduct a literature review on logistics, operations, and related functions and conduct structured interviews of key employees at industry-leading firms.