April 27, 2006
Once Again the Facts do not Support the Arguments on Section 404 and IPO's
From Reuters yesterday:
"The New York Stock Exchange on Wednesday joined a chorus of business interests sounding the alarm over U.S. markets' exclusion from most of 2005's largest initial public stock offerings.
NYSE Group Inc. Chairman Marshall Carter told a congressional panel that many new global stock listings are going to non-U.S. exchanges due in part to U.S. litigiousness, costly regulations and accounting complexity..."
From this same hearing, another voice speaks:
"It is somewhat disingenuous to argue that many of these companies would have listed in the U.S. if only litigation or regulation were lessened. Many simply listed on their more natural markets ... In short, the sky is not falling, but we can do better," said Hooley, an Oregon Democrat."
An Ernst & Young Study showed the following:
"Only one of the largest 24 initial public stock offerings globally in 2005 was registered in the United States, according to a study by accounting firm Ernst & Young ."
"BUT the E&Y study also showed the United States in 2005 remained the world's top country in capital raised in IPOs, as well as world leader in the number of IPOs.
Two of the world's biggest IPOs last year included China Construction Bank Corp. and China Shenhua Energy Co. Ltd. . Both listed on the nearby Hong Kong exchange.
Two others were Electricite de France and Gaz de France , both French companies that listed on the multinational Euronext exchange, which operates out of Paris.
Copyright 2006 Reuters "
So let's not race to the bottom on standards. The US was not going to get those IPO's anyway. Why lower your standards on Sarbanes-Oxley and then find out it did not help the cause.
Standards are a good thing to have. Let's see what happens in a downturn in markets with NO standards. Then you can see some real calamity.
Stay the course.
If your company must document its internal controls over financial reporting, see www.issuescentral.com to learn more about Compliance Playbook(tm) or if your company is based in Canada, see www.compliancepartner.ca to learn more about Compliance Partner(tm).
"The New York Stock Exchange on Wednesday joined a chorus of business interests sounding the alarm over U.S. markets' exclusion from most of 2005's largest initial public stock offerings.
NYSE Group Inc. Chairman Marshall Carter told a congressional panel that many new global stock listings are going to non-U.S. exchanges due in part to U.S. litigiousness, costly regulations and accounting complexity..."
From this same hearing, another voice speaks:
"It is somewhat disingenuous to argue that many of these companies would have listed in the U.S. if only litigation or regulation were lessened. Many simply listed on their more natural markets ... In short, the sky is not falling, but we can do better," said Hooley, an Oregon Democrat."
An Ernst & Young Study showed the following:
"Only one of the largest 24 initial public stock offerings globally in 2005 was registered in the United States, according to a study by accounting firm Ernst & Young ."
"BUT the E&Y study also showed the United States in 2005 remained the world's top country in capital raised in IPOs, as well as world leader in the number of IPOs.
Two of the world's biggest IPOs last year included China Construction Bank Corp. and China Shenhua Energy Co. Ltd. . Both listed on the nearby Hong Kong exchange.
Two others were Electricite de France and Gaz de France , both French companies that listed on the multinational Euronext exchange, which operates out of Paris.
Copyright 2006 Reuters "
So let's not race to the bottom on standards. The US was not going to get those IPO's anyway. Why lower your standards on Sarbanes-Oxley and then find out it did not help the cause.
Standards are a good thing to have. Let's see what happens in a downturn in markets with NO standards. Then you can see some real calamity.
Stay the course.
If your company must document its internal controls over financial reporting, see www.issuescentral.com to learn more about Compliance Playbook(tm) or if your company is based in Canada, see www.compliancepartner.ca to learn more about Compliance Partner(tm).
