The role of the Sarbanes-Oxley Act (SOX) in Reducing Agency Costs

Farhad Al-kake; Dler Mousa Ahmed

doi:10.25212/lfu.qzj.4.2.19

Authors

Farhad Al-kake Accounting & Finance Department, Administration & Economics College, Lebanese French University
Dler Mousa Ahmed Accounting Department, Administration & Economics College, Salahaddin University – Erbil

DOI:

https://doi.org/10.25212/lfu.qzj.4.2.19

Keywords:

Agency Theory, Agency Costs, Sarbanes-Oxley Act (SOX)

Abstract

The purpose of this research is to explain the role of the Sarbanes-Oxley Act (SOX) in reducing agency costs in the companies operating in the Kurdistan Region of Iraq. In order to achieve the objectives of the study, a ten questions questionnaire has been designed and distributed to sixty-eight professional auditors operating in the region. This analysis is based on sixty-three of them. The researchers reached the main conclusion that the implementation of the Sarbanes-Oxley Act (SOX) has a significant role in reducing the costs of the agency in the companies operating in the region. The researchers also made a number of recommendations including the need to adopt the Sarbanes- SOX) in the Kurdistan Region of Iraq as the main tool for the
control of companies.

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