Regulatory agencies and the U.S. Congress are recognizing both the values and emerging issues for small firms as the Sarbanes-Oxley Act of 2002 (SOX) has been implemented. On April 23, 2006, the Advisory Committee on Smaller Public Companies issued a final report to the Security and Exchange Commission assessing the impact of SOX on smaller public companies (Final Report 2006). A random sample of CEOs, CFOs, and board members of small, medium, and large firms were surveyed and their opinions of the overall impact of SOX on their firm were:

Construct a cluster bar chart of these findings (Michelson, Stryker and Thorne 2009).

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Impact of Sox Little or no impact Moderate to very major impact Small Firms 17 13 Medium Firms 13 41 Large Firms