AN EMPIRICAL ANALYSIS OF STUDENT PERCEPTIONS ABOUT SARBANES OXLEY MANDATES

Abstract

The AACSB International Ethics Task Force, formed in 2002, called for enhanced education across business school curricula with respect to the Sarbanes Oxley Act (SOX) of 2002. The study we have undertaken evaluates business students’ perceptions relative to the impact and importance of SOX using an assessment process that compares accounting, finance, and management majors. A limited survey (26 items) was distributed to 179 upper-division students at an AACSB accredited business school in the Midwest during spring semester of 2007. T-tests for equality of means were used to compare the responses by major. Several statistically significant differences were identified across the subject majors. Accounting majors perceived SOX as one of the most important pieces of legislation for the accounting profession. Finance majors revealed a positive perception of SOX’s impact, especially with respect to corporate transparency and investor confidence. Management majors exhibited the least positive perceptions of, and the least familiarity with, SOX. Overall, the

students appeared to believe that despite the reported high costs associated with compliance, SOX has benefited financial statement users. Our results suggest that enhanced coverage of SOX in core business courses taken by all business majors is warranted.