The Georgia study combined a broad sample of 8,000 firms of all sizes, and concluded that SOX "dramatically increased the cost of corporate boards, particularly for small firms." Other criticism says that indpendent directors often have a lack of intimate knowledge of a company; and yet another study of 254 companies in 50 industries finds that there is no evidence independent boards produce better returns for shareholders.
What's the solution? Some suggest a board comprised of important shareholders, or "oversight owners" (broadly defined as those who hold more than 1% of firm's stock for more than six months).
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