About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

84 B.U. L. Rev. 301 (2004)
Gatekeeper Failure and Reform: The Challenge of Fashioning Relevant Reforms

handle is hein.journals/bulr84 and id is 313 raw text is: ARTICLES GATEKEEPER FAILURE AND REFORM: THE CHALLENGE OF FASHIONING RELEVANT REFORMS JOHN C. COFFEE, JR.* IN TRO D UCTION ............................................................................................... 302 I. GATEKEEPERS: PAST AND PRESENT .................................................... 308 A . D efining the Concept ................................................................... 308 B. The Auditing Profession During the 1990s: A Study in Transition ................................................................... 311 C. Security Analysts During the 1990s ............................................. 315 D. Explaining Gatekeeper Failure ................................................... 318 1. The Deterrence Explanation: The Underdeterred G atekeeper ............................................................................. 3 18 2. The M arket Bubble Story ...................................................... 323 3. Allocating Responsibility Among Gatekeepers, Managers, and Investors .......................................................................... 326 a. The Changing Motivations of Managers ......................... 327 b. The Role ofInvestors ....................................................... 328 c. The Role of Gatekeepers .................................................. 330 4. A Prelim inary Evaluation ...................................................... 330 5. An International Perspective ................................................. 331 II. THE NEAR FUTURE OF GATEKEEPERS: SARBANES-OXLEY AND THE LOOMING LITIGATION CRISIS .............................................................. 333 A. A Typology of Conflict of Interest Reforms ................................. 334 1. Structural R eform .................................................................. 334 2. Prophylactic R ules ................................................................. 334 3. Independence and Empowerment Rules ................................ 335 4. L iability R ules ....................................................................... 335 B. The Sarbanes-Oxley Act: What It Did and Did Not Do ............... 336 C . The Judicial Response ................................................................. 337 D. The Prospective Litigation Impact of Reform ............................. 342 III. THE FUTURE GATEKEEPER: REMEDIES FOR GATEKEEPER FAILURE ... 345 A. Striking the Balance on Liability ................................................. 346 B. Designing a Stricter Liability Approach: A Proposal ............. 349 C. Implementing the Gatekeeper Role of Attorneys ......................... 353 Adolf A. Berle Professor of Law, Columbia Law School, and Director, Columbia Law School Center on Corporate Governance.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most