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Private Opportunity In Public Regulation

By Jusko, Jill
Publication: Industry Week
Date: Wednesday, February 1 2006
HEADNOTE

SARBANES-OXLEY

HEADNOTE

With an eye toward the future, some closely held firms voluntarily adopt SOX principles.

PUBLIC

COMPANIES MAY find the provisions imposed by the Sarbanes-Oxley (SOX) Act burdensome, but some forward-looking private companies are voluntarily adopting SOX principles.

So say the results of PricewaterhouseCoopers' recent Trendsetter Barometer, which was based on interviews with CEOs of 340 privately held product and service companies identified as among the fastest growing in the past five years.

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Slightly more than a quarter of those CEOs say their companies have adopted Sarbanes-Oxley "best practices." Of those, 30% have applied its principles in governance, 26% in transparency and 43% in both areas. Data show that adopters tend to be from larger businesses (averaging $74.2 million in annual revenues) that have grown faster in the past five years and expect 25% higher revenue growth in the next 12 months.

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