More Change

The drumbeat for corporate reform seemed to continue after the Sarbanes-Oxley Act became law and after the NYSE voted to change its listing standards. At the time of publication, some Congressmen have expressed an interest in investigating investment banks. Others have expressed a desire to reform the pension regulations to better protect employees . The SEC must also determine how much of the Act will be implemented. Clearly, there could be more laws and regulations developed. We urge lawmakers and regulators to target their efforts on the problems (like those identified in Table 12-1) and not on the symptoms. We also encourage the development of laws that create good incentives instead of simply providing stiffer punishment . In the next chapter, we discuss these issues and offer suggestions for changing the corporate incentive system and the corporate monitoring system in ways that will enhance them and alter behavior.