Study On How Chinese Enterprises To Answer The Challenges From Sarbanes Act

At the turn of the century, a series of financial scandals was broken out in America,which resulted in some American enterprises bankruptcy, such as Enron, World Com. All these stroked downrightly the confidence of the investors to American capital market. In order to change the situation, American government has constituted and issued a series of laws and regulations, among which the Sarbanes-Oxley Act of 2002 (for short Sarbanes Act) is the representative case. The act mainly deals with enterprise governance with strict and rigor requests, that is, all the flow of enterprises operation concerning the financial transaction must be transparency, furthermore, the flow of internal control can put the risk sunder control and be recorded particularly. The requests of the act is comprehensive and complicated, and all the enterprises which is to be listed in American stock market must carry out。Therefore, how Chinese enterprises to reply the act would become an urgent question for discussion.Then, what is the main content of the act? what opportunities, challenges and chances would be bring to Chinese enterprises? In the face of the act, how to perform? How can Chinese enterprises supervise the risks effectively according to the requests in Sarbanes Act? Is there the practical and feasible resolution flow for Chinese enterprises projects concerning Sarbanes Act?In order to unscramble the problem, the article has made great efforts and attempts to wish to help Chinese enterprises to make clear the requests of the act, by which means the enterprise governance level and the gap between itself and the act's request can be evaluated, furthermore, to shorten the gap to the best of our abilities step by step and perfect our governance.The article is conducted to discuss respectively the chances and challenges which the act would bring to Chinese listed companies as well as the companies which are to be listed in American stock market. Through lots of argumentation, respective conclusions can be drawn, based on which the corresponding measure would be bring up. The article can be fall into three parts, that is, the analysis on the challenges confronting Chinese enterprises, how do Chinese enterprises listed in American stock market answer the challenges from Sarbanes Act, how do Chinese enterprises unlisted in American stock market learn from Sarbanes Act.The main contributions are fallowing, that is: first, Chinese enterprises are carved up the enterprises listed in American stock market and the ones which are to be listed in that market, and further what advantageous standpoints the two kinds of enterprises above should have be discussed respectively. Second, given the embedded in-depth consideration about how the enterprises listed in American stock market to answer the act, the article has designed a mode of internal control as well as the illustrations of some cases. In this aspect, the integrate articles relating to this topic hasn't been published. Third, after analyzed originally and deeply how Chinese enterprises learn from Sarbanes Act, the article has given a macroscopical proposal.