How do the salient features of Corporate Governance in the post Sarbanes-Oxley Act era bear on the discipline of Financial Engineering?

Author

Instructor

Institution

Course Code

THE SALIENT FEATURES OF CORPORATE GOVERNANCE ON FINANCIAL ENGINEERING AFTER THE SARBANES-OXLEY ACT

The Sarbanes-Oxley Act was implemented in 2002 for the improvement of the finical sector through the reinforcement of checks and balances There were questions regarding the accounting standards . According to the Act , many changes had to be made in the financial reporting and companies had to be analyzed . Much of the corporate governance has been directed to the financial reporting and financial engineering is one of the areas that have

received much of the corporate governance attention since the Sarbanes-Oxley Act (Bies 2002

Since then , the issue of auditor 's independence has been on the front line in regards to corporate governance . There has been a growth in the number of organizations which has been brought about by the discouragement of external investors . These organizations have employed innovative financing techniques which are difficult to be understood by external investors (Hoogervorst 2009 :167 . Corporations have introduced risk-management tools which have replaced the ancients accounting standards . This has made it possible for the discloser firm 's positions in terms of risk management and the strategies they use for public transparency . Most of the creditors have embraced financial innovation and transparency which lays a basis for corporate governance (CCH Editorial 2008 :144

In the Sarbanes-Oxley Act , issues were raised to provide corporate governance in private companies . Much has not been done in these companies because of the concentration on public companies . For the last ten...