Category - Hanen KHEMAKHEM

École des Sciences de la Gestion de l’Université du Québec à Montréal ESG-UQAM, Canada

Nadejda SERDIUC Hanen KHEMAKHEM

The Impact of SOX Adoption on the Compensation of Non-US Companies’ Boards: The Case of Canadian Companies

The purpose of this article is to study the relationship between the adoption of the Sarbanes-Oxley Act (SOX) and the compensation of the board of directors of Canadian companies listed on US stock markets. The SOX act, promulgated on 30 July 2002 and the rules adopted by the Securities and Exchange Commission (SEC) require, among furthermore, a majority of independent directors on boards. The literature focuses on two main differences between US companies and Canadian companies: more concentrated ownership and the smaller market capitalization of Canadian companies. Therefore, a consistent application of SOX on all the companies that differ at the base, in their size and structure, may have a different impact on the costs of compliance. Using a sample of 17 Canadian companies listed on US stock exchanges from 2001 to 2004, our analysis show that there is a link between the adoption of SOX and the increased in the cash compensation of the board of directors. The results also show that...

Read More
Aims & Scope

Expert Journal of Business and Management welcomes original academic articles to be published in open access.

Read more about Expert Journal of Business and Management →

Guide for Authors

This 'Guide for Authors' provides useful information about the publication process at Expert Journal of Business and Management.

Read 'Guide for Authors' →

Current Issue

Volume 4(1) of Expert Journal of Business and Management is now available online

View Current Issue →

Forthcoming Papers

View upcoming economics academic articles accepted for publication.

View Articles →

Send Your Article Now