Top executives sign off on statements

By Gary Strauss and Adam Shell
USA Today

Scores of top executives scrambled to certify their companies' financial statements yesterday, helping ignite a sharp relief rally on Wall Street.

About 85 percent of 695 companies required to meet a Securities and Exchange Commission deadline had filed by last night. As filings poured in, fears of fresh accounting scandals eased, reversing the Dow Jones industrial average's early 100-point loss. The Dow rallied sharply, closing up 261 points to 8,743.

The Standard & Poor's 500 index and the Nasdaq composite also posted big gains. The certifications weren't the only catalyst. Market analysts said a bond selloff and investors covering bets that stocks would decline also contributed.

Until yesterday, only about half the certifications — and relatively few from big companies — had been filed, fanning investor angst. But executives at several major firms, including Coca-Cola, General Motors and Wal-Mart, filed certifications yesterday.

Executives at just a handful of troubled companies — WorldCom, Adelphia Communications, Dynegy, CMS Energy, Nicor and Interpublic Group — said they couldn't sign off on records. The SEC says it may take until next week to determine how many companies filed. It will allow five-day extensions to some firms. Executives at an additional 252 companies will file later, depending on when their fiscal years end.

The SEC ordered chief executives and chief financial officers at major companies to personally account for financial statements, a move designed to restore investor confidence.

Executives at 15,000 public companies face similar requirements under federal legislation to swear oaths to the accuracy of company financial results.

Whether the executive certifications and oaths restore investor confidence remains uncertain.

Corporate-governance experts say the filings are largely a symbolic step to bolster investor trust, given that executives already sign off on financial statements.