2010 Student Research Conference:
23rd Annual Student Research Conference

Government Regulations on Businesses and Industries: A Study on the Events That Led to SOX and Future Banking Regulation
Laura M. Carel
Dr. Jason Lin, Faculty Mentor

The purpose of this study was to compare the events leading up to Enron and Sarbanes-Oxley with those preceding the recent financial crisis and future banking regulation, as well as comparing the effects of the regulation. The report begins with a literature analysis of the events that led to each crisis and the regulation following, including a discussion regarding the role derivatives played in each. Common themes exist between these regulations, particularly transparency and accountability. Next is a discussion of the possible correlation of the two crises, followed by an empirical analysis of the top accounting firms and banking industries before and after their respective crisis. In both cases, the events eliminated the weak companies, leaving only a few to control the market. It was concluded that legislation will prevent a crisis similar to the one at hand, but the desire to increase profits will ultimately circumvent the existing regulations.

Keywords: Sarbanes-Oxley, financial crisis, government regulation, accounting firms, banking industries , accountability, Enron, derivatives

Business Administration

Presentation Type: Oral Paper

Session: 2-2
Location: VH 1000
Time: 8:15

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