IDEAS home Printed from https://ideas.repec.org/a/pal/ijodag/v19y2022i1d10.1057_s41310-021-00124-2.html
   My bibliography  Save this article

Decoding lessons from the Facebook Consent Decree: Does Sarbanes–Oxley foreshadow the future of privacy regulation?

Author

Listed:
  • Patrick M. Ryle

    (Dalton State College, Wright School of Business)

  • Brett L. Bueltel

    (University of Southern Indiana, Romain College of Business)

  • Mark A. McKnight

    (University of Southern Indiana, Romain College of Business)

  • Judy K. Beckman

    (University of Rhode Island)

Abstract

This paper examines the utility of the Sarbanes–Oxley Act of 2002 to assist regulators engaged in privacy policy development. By exploring best practices employed by the financial reporting industry, and the specific terms of the Sarbanes–Oxley Act of 2002, the present research offers guidance for the incorporation into privacy regulation. The paper advocates that both the FTC/Facebook Court Order and the Sarbanes–Oxley Act of 2002 should be now be considered de facto minimum standards for American privacy policy, including required CEO certifications of industry obligations, establishment and maintenance of effective internal controls, required CEO, CFO and CPO certification of control compliance, disgorgement of ill-gotten gains by organizations and executives, requirement of independent third-party compliance review as well as independence of audit committees and privacy compliance staff and, finally, the establishment of, and compliance with, a regulatory oversight board similar to the PCAOB.

Suggested Citation

  • Patrick M. Ryle & Brett L. Bueltel & Mark A. McKnight & Judy K. Beckman, 2022. "Decoding lessons from the Facebook Consent Decree: Does Sarbanes–Oxley foreshadow the future of privacy regulation?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(1), pages 1-10, March.
    • Handle: RePEc:pal:ijodag:v:19:y:2022:i:1:d:10.1057_s41310-021-00124-2
    DOI: 10.1057/s41310-021-00124-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41310-021-00124-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41310-021-00124-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hugo van Driel, 2019. "Financial fraud, scandals, and regulation: A conceptual framework and literature review," Business History, Taylor & Francis Journals, vol. 61(8), pages 1259-1299, November.
    2. Dey, Aiyesha, 2010. "The chilling effect of Sarbanes-Oxley: A discussion of Sarbanes-Oxley and corporate risk-taking," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 53-57, February.
    3. Bargeron, Leonce L. & Lehn, Kenneth M. & Zutter, Chad J., 2010. "Sarbanes-Oxley and corporate risk-taking," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 34-52, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Qiuhong & Ziebart, David A., 2015. "SOX and bondholders' reliance on monitors," Research in Accounting Regulation, Elsevier, vol. 27(2), pages 129-137.
    2. Liu, Wenjun & Lin, Guoyu & He, Qian, 2024. "Enhanced management information disclosure responsibilities and corporate risk-taking: Evidence from the accountability system for errors in China," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 511-531.
    3. Krapl, Alain & Salyer, Robert, 2017. "The effects of fair value reporting on corporate foreign exchange exposures," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 215-238.
    4. Balachandran, Balasingham & Faff, Robert, 2015. "Corporate governance, firm value and risk: Past, present, and future," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 1-12.
    5. Meng, Qingbin & Li, Haitong & Chan, Kam C., 2023. "Fleeing entrepreneurs: Foreign residency right and corporate risk-taking," Research in International Business and Finance, Elsevier, vol. 65(C).
    6. Waters, James, 2015. "Optimal design and consequences of financial disclosure regulation: a real options approach," MPRA Paper 63369, University Library of Munich, Germany.
    7. Pinkowitz, Lee & Stulz, Rene M. & Williamson, Rohan, 2012. "Multinationals and the High Cash Holdings Puzzle," Working Paper Series 2012-10, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    8. Wang, Ke, 2023. "Essays in corporate risk," Other publications TiSEM 8c076f0d-2c02-40a4-b6d7-e, Tilburg University, School of Economics and Management.
    9. Aghanya, Daniel & Agarwal, Vineet & Poshakwale, Sunil, 2020. "Market in Financial Instruments Directive (MiFID), stock price informativeness and liquidity," Journal of Banking & Finance, Elsevier, vol. 113(C).
    10. Wunhong Su & Liuzhen Zhang & Chao Ge & Shuai Chen, 2022. "Association between Internal Control and Sustainability: A Literature Review Based on the SOX Act Framework," Sustainability, MDPI, vol. 14(15), pages 1-30, August.
    11. Kusnadi, Yuanto, 2015. "Insider trading restrictions and corporate risk-taking," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 125-142.
    12. Li, Xing & Chen, Xi & Hou, Keqiang, 2024. "FDI technology spillovers in Chinese supplier-customer networks," International Review of Financial Analysis, Elsevier, vol. 94(C).
    13. Ahmad, Muhammad Farooq & Aziz, Saqib & Dowling, Michael & Kowalewski, Oskar, 2023. "Board reforms and innovation," International Review of Financial Analysis, Elsevier, vol. 88(C).
    14. Jiang, Tianjiao & Levine, Ross & Lin, Chen & Wei, Lai, 2020. "Bank deregulation and corporate risk," Journal of Corporate Finance, Elsevier, vol. 60(C).
    15. Wen, Fenghua & Li, Cui & Sha, Han & Shao, Liuguo, 2021. "How does economic policy uncertainty affect corporate risk-taking? Evidence from China," Finance Research Letters, Elsevier, vol. 41(C).
    16. Bhabra, Harjeet S. & Hossain, Ashrafee T., 2017. "Impact of SOX on the returns to targets and acquirers in corporate tender offers," The North American Journal of Economics and Finance, Elsevier, vol. 42(C), pages 1-19.
    17. Timothy J. Quigley & Adam J. Wowak & Craig Crossland, 2020. "Board Predictive Accuracy in Executive Selection Decisions: How Do Initial Board Perceptions of CEO Quality Correspond with Subsequent CEO Career Performance?," Organization Science, INFORMS, vol. 31(3), pages 720-741, May.
    18. Angelica Gonzalez & Paul André, 2014. "Board Effectiveness and Short Termism," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(1-2), pages 185-209, January.
    19. Giau Bui, Dien & Chen, Yehning & Lin, Chih-Yung & Lin, Tse-Chun, 2021. "Risk-taking of bank CEOs and corporate innovation," Journal of International Money and Finance, Elsevier, vol. 115(C).
    20. Zhang, Cheng & Zheng, Yifan & Fan, Shide & Wu, Yujuan, 2023. "Integration of two industries, risk-taking and manufacturing enterprise value: An empirical investigation based on Chinese listed companies," Finance Research Letters, Elsevier, vol. 53(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:ijodag:v:19:y:2022:i:1:d:10.1057_s41310-021-00124-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.