The U.S. Sarbanes-Oxley law, which imposes stricter accounting rules and penalties on publicly traded companies, might make foreign firms reluctant to list on U.S. exchanges, an SEC official said Tuesday.
Since enactment of the law, passed in the wake of the Enron Corp. and WorldCom Inc. securities fraud scandals, the number of companies with American depositary receipts listed on U.S. exchanges has dropped 8.8% to 490.
"There is much discussion within the SEC about how Sarbanes-Oxley may be imposing a greater cost than anticipated," U.S. Securities and Exchange Commissioner Paul Atkins said during a conference in Brussels, Belgium. "Perception can be every bit as important as reality in financial markets."
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