The introduction of Sarbanes Oxley seemed to have caused unintended consequence. That is driving international company floatation away from listing in the New York Stock Exchange (NYSE) or from the NASDAQ stock market, to their European and Asian rivals London Stock Exchange (LSE) and Hong Kong Stock Exchange.
Official data shows, of the 25 largest foreign companies to float outside their home country last year, only six of them chose American exchanges, compare to 22 in 2000, while London and Hong Kong overtook New Yorkas the international IPO capitals of the world. In 2003, the first year after Sarbanes-Oxley was passed into law, the New York Stock Exchange and Nasdaq, the leading American exchanges, won new listings worth about $50 billion, while the LSE and its Alternative Investment Market(AIM) junior market, and the Hong Kongexchanges secured about $25 billion each. In 2006,New York’s markets have won only about $30 billion of listings, while London and Hong Konghave amassed close to $90 billion between them. (Timesonline 2006)
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