IPO in Russia. The challenges and impact of Section 404 of the Sarbanes-Oxley Act on the post IPO management for public Russian companies

Kosulnikova, Regina (2005) IPO in Russia. The challenges and impact of Section 404 of the Sarbanes-Oxley Act on the post IPO management for public Russian companies. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Recently, initial public offering on the American stock exchanges is one of the preferable ways to increase substantially the capital to support firm's investment projects or repay debt for the Russian private companies. Having become public, the company should consider different aspects of its new status. Apart from straining significant efforts for continuous improvement of company's control and financial reporting systems due to keep credibility and investors' confidence, management must acknowledge its obligation to comply with the American laws and regulations as well as the Security and Exchange Commission (SEC) requirements.

The most recent SEC regulation is the Sarbanes-Oxley Act of 2002 enacted in response to the large corporate financial scandals and addressed to new corporate governance rules for public companies. The major aim of the Act is to protect investors by improving the accuracy and reliability of corporate disclosures, forecing company's officers to be more accountable for their conduct. Section 404 of the Act is considered by experts and financial practitioners the most challenging aspect of the Act. It requires publicly registered companies and their external auditors to report on the effectiveness of the company's internal control over financial reporting.

Investigation and analysis of challenges, the Russian public companies faced due to compliance with Section 404 of the Act, might be crucially important and useful for interested parties, providing them by opportunities to learn from existing experience and improve the process of compliance.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Dec 2005
Last Modified: 25 Oct 2016 08:56
URI: http://eprints.nottingham.ac.uk/id/eprint/20006

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