Are SOX Costs Really Down for Public Companies?

National Sarbanes-Oxley study claims slight reductions in cost of being public in 2005 -- contrasts some claims of dramatic reduction.

The overall cost of being public associated with corporate governance reform in 2005 dropped slightly from the rising levels seen in 2004, according to the fourth annual study on the costs associated with corporate governance reform.

The study, conducted by Foley & Lardner LLP, revealed that costs associated with corporate governance reform dropped 16 percent for companies with under US$1 billion in annual revenue and six percent for companies with over $1 billion in annual revenue.

Large decreases in costs associated with lost productivity, legal fees, and initial corporate governance reform set-up costs drove these reductions between 2004 and 2005.

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