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Regulations such as the Sarbanes-Oxley Act and the Dodd-Frank Act were implemented to enhance corporate governance and reduce agency conflicts. These laws require boards of directors to establish independent audit committees, ensure greater transparency in financial reporting, and implement stricter oversight of executive compensation. Additionally, the requirement for independent directors helps align the interests of shareholders and management, promoting accountability and reducing the risk of self-serving behavior by executives.

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2mo ago

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