Models of Willingness-to-Comply

Abstract

Sarbanes Oxley Act (“SOX”; USA), the PCAOB, and the Dodd Frank Act (USA statute) and similar institutions in other countries have become major macroeconomic, sustainability, and IPE (international political economy) policies because of their significant domestic and cross-border multiplier effects across countries and industries via US multinational corporations (MNCs) and foreign companies that do business in the US and or list their shares/debts on US financial exchanges. SOX, the PCAOB and the Dodd Frank Act have had pervasive effects on accounting firms, consulting firms, and credit rating agencies (CRAs) in the US (e.g., disclosures, professional standards, regulation/compliance, standard-of-care, legal liability, internal controls, daily operations processes, etc.), but SOX, the Dodd Frank Act, and the PCAOB have failed.