The use of statistical techniques including t-tests, ANOVA,
Pearson's Correlation Coefficient analysis and the use of predictive
statistics techniques in addition to those mentioned will be used.
Expected Results of Research
It is anticipated that the Act will be shown to have a statistically
significant effect on smaller firms choosing to stay private, and if they
are public already, to choose to either go back to being privately held or
be acquired. Further, it is expected that the results will show that those
small companies who had the greatest drop in market valuation will be the
most likely to be acquired by companies in their industries fulfilling the
roles of market consolidators. This will be because those companies acting
as market consolidators will have purchasing power and the need in building
out their broader market strategies to include smaller, more niche-oriented
firms into their strategic plans. For larger corporations the costs of
being in compliance will be shown as a factor influencing their decisions
to offshore not only their Sarbanes-Oxley compliance initiatives, but their
entire business process management (BPM) initiatives as well. The larger
corporations will be seen as offshoring all unnecessary processes and tasks
so they can concentrate on their core businesses, often looking for a 40%
reduction or more in achieving compliance by using Indian outsourcers to
attain cost advantages. In this regard it will be shown to be
statistically significant that the Sarbanes-Oxley Act has in the end
contributed on average 30% of the net incomes of Indian outsourcers who
have become billion-dollar organizations as a result of serving large and
small publicly-held US corporations to become complaint with the Act.
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