Companies with Good Internal Controls Have Highest Average Share Price Increases; Lord & Benoit Report: Do the Benefits of Section 404 Exceed the Cost?WORCESTER, Mass. -- Lord & Benoit, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control a national SOX (1) (Schema for Object-oriented XML) An XML schema developed by Veo Systems and Muzino Communications, which was submitted to the W3C. SOX is based on DTD, but adds data typing and reuse mechanisms. Research and Compliance firm has completed a study of share price movements of 2,481 calendar year end public companies that have undergone two Sarbanes-Oxley Section 404 internal control audits. The study showed that the average share prices of companies with clean 404 internal controls climbed 28% over a two year period starting with the year before SOX was required. The Russell 3000 index The Russell 3000 Index is a stock market index of US stocks. The ticker is "RUA" or similar. See Russell Indexes page for main discussion. See also the iShares Russell 3000. only increased by 18% in this same period. Stock values of companies with adverse 404 controls however decreased 6%. Additionally, the market rewarded companies that transitioned from a first year adverse report (1% increase) to a clean second year report (25% increase). Internal control statistics were mined using AuditAnalytics.com. "With compliance costs decreasing and share prices increasing by 26% to 28%, the study results indicate that strong internal controls can translate into higher returns to shareholders" says Bob Benoit Bob Benoit was a professional bowler in the Professional Bowlers Association (PBA) in the 80s and 90s. Over the course of his career, Benoit won 4 PBA titles. He is mostly known for being the first bowler to ever roll a perfect game in a televised title match, as well as the fifth , President and Director of SOX Research at Lord & Benoit. "With the SEC and PCAOB PCAOB Public Company Accounting Oversight Board coming under a lot of pressure because of cost concerns to eliminate Section 404 requirements not only for many current Section 404 filers but also for all non-Accelerated Filers, this research gives one more reason for pause. It would seem that more research and innovative thinking is needed before regulatory bodies and/or Congress act." adds Mr. Benoit. The complete "Lord & Benoit Report: Do the Benefits of Section 404 Exceed the Cost?" is available by contacting Info@LordandBenoit.com or calling (508) 853-6404 x.204. About Lord & Benoit: Lord & Benoit is a national SOX Compliance firm dedicated to providing cost effective solutions for SmallCap and MicroCap microcap 1. Of or relating to the common stock of a company with a small capitalization, usually between $50 million and $250 million. Microcap stocks tend to experience volatile price movements and are subject to investment fraud schemes. companies. The efficient process is called MicroSox(TM). For more information, please visit our website at www.section404.org |
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