The US as the new NJ

I've been talking (e.g., here) about the effects of SOX in driving foreign firms from our markets. Latest evidence from PWC, reported in the Guardian (HT SOX First):

The European exchanges attracted 126 overseas IPOs in 2005, which raised €9.6bn. In America, 23 companies from outside the US listed, raising €3bn. Last year there were 603 new listings on European markets, up from 433 in 2004. The US figure fell from 236 to 205.

The story says the statistics reflect not just rising European markets (of course ours are rising too) but also "a growing reluctance to accept the expensive disclosure rules imposed on US-listed companies by Sarbanes-Oxley."

The story highlights the effect of SOX in driving Russian and Chinese companies to London rather than NY. More interestingly, the story quotes someone from PwC that "we've even seen some American companies coming to the Alternative Investment Market [in London]. Previously, for patriotic reasons if nothing else, you would not have expected US companies to come here.'"

In short, SOX is killing the US as the premier capital market in the world. The effect ultimately might be comparable to that on New Jersey's lead in the US incorporations market a century ago when Gov. Woodrow Wilson tried to impose antitrust law on NJ corporations. Anybody remember NJ as the premier state for incorporations?