Nonetheless, a study by Dr. Ivy Zhang of the University of Minnesota raises concerns about SOX. Dr. Zhang concluded that SOX contributed significantly to wiping $1.4 trillion off the value of the stock market. Zhang says some indirect costs of SOX compliance were not included in budgets by managers. While SOX likely imposed significant direct compliance costs on firms, the indirect costs could be even greater. Executives have complained that complying with the details of the rules diverts their attention from normal business practices. Also, as SOX increases the litigation risks for executives, managers are likely to behave more conservatively than shareholders would prefer. These changes could have long-lasting and far-reaching influence on business practices.

Based on what you know about SOX, what are the three strongest pros and cons for the controversial Act?