When there is high information asymmetry between directors and managers,independent directors do not have enough information to perform their functions. Only when faced with a good internal information environment can...When there is high information asymmetry between directors and managers,independent directors do not have enough information to perform their functions. Only when faced with a good internal information environment can such directors acquire enough information to provide advice and monitor managers,and only under these conditions can increasing their proportion on the board effectively reduce agency problems, such as driving managers to disclose information to investors. Using a sample of Chinese listed firms that voluntarily disclose their auditors' reports on internal controls from 2007 to 2009, this study explores how the information acquisition costs of independent directors affect their monitoring effectiveness by investigating the disclosure decisions of their internal control audits. We find that when the information asymmetry between insiders and outside directors is low and the proportion of independent directors on a board is high, a firm is more likely to voluntarily disclose its internal control audit report.展开更多
Using propensity score matching (PSM) and the difference-in- difference (DID) approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors' reports on internal cont...Using propensity score matching (PSM) and the difference-in- difference (DID) approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors' reports on internal control and the economic consequences. Using a sample of non-financial firms listed on the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange between 2006 and 2010, we find that firms are more likely to voluntarily disclose their auditors' reports on internal control if they have higher state ownership, lower managerial ownership, sanction records, audit committees, non-Big Four auditors as their auditors of annual financial reports, unqualified auditors' opinions on financial reports, less board independence, after controlling for firm size, liabilities, performance, and history. Moreover, as compared to a control group that exhibits similar characteristics, firms that voluntarily disclose auditors' reports on internal control are associated with positive earnings quality and negative cost of equity capital.展开更多
This paper aims to investigate the issue relating to the internal control system of listed companies, according to the publication of the new framework COSO (Committee of Sponsoring Organization of Treadway Commissio...This paper aims to investigate the issue relating to the internal control system of listed companies, according to the publication of the new framework COSO (Committee of Sponsoring Organization of Treadway Commission) updated in 2013. Since December 15, 2014 came into force the new framework on the procedures to implement and to make use of an efficient system of internal control for listed companies. With the introduction of the new framework, the original framework of 1992 will be considered as the preceding version. The recent 2013 updated framework is considered as an "evolution rather than a revolution". This study will explore the latest changes brought to the 1992 COSO framework and the opportunity arising with the transition to COSO 2013.展开更多
基金the China National Natural Science Foundation "Internal Control of Listed Companies and Investors Protection" (Project No. 70972076)Humanities Social Science Foundation of the Ministry of Education "Internal Control, Overinvestmentand Financial Crisis" (Project No. 09YJA790199)+2 种基金The Key Research Institutions of Humanities and Social Science Foundation of Guangdong Province "Internal Control and Value Creation–An Empirical Study Based on China’s Capital Market"(Project No. 11JDXM79004)National Social Science Foundation Youth Project (Project No.10CGL041)Academic New Distinguished Scholar Prize 2011 for PhD candidates offered by the Ministry of Education (14000-3191033)
文摘When there is high information asymmetry between directors and managers,independent directors do not have enough information to perform their functions. Only when faced with a good internal information environment can such directors acquire enough information to provide advice and monitor managers,and only under these conditions can increasing their proportion on the board effectively reduce agency problems, such as driving managers to disclose information to investors. Using a sample of Chinese listed firms that voluntarily disclose their auditors' reports on internal controls from 2007 to 2009, this study explores how the information acquisition costs of independent directors affect their monitoring effectiveness by investigating the disclosure decisions of their internal control audits. We find that when the information asymmetry between insiders and outside directors is low and the proportion of independent directors on a board is high, a firm is more likely to voluntarily disclose its internal control audit report.
基金Acknowledgements The author gratefully acknowledges the financial supports from the National Natural Science Foundation of China (No. 70940025) and the Humanities and Social Science Research Project of Ministry of Education of China (No. 11YJC630270).
文摘Using propensity score matching (PSM) and the difference-in- difference (DID) approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors' reports on internal control and the economic consequences. Using a sample of non-financial firms listed on the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange between 2006 and 2010, we find that firms are more likely to voluntarily disclose their auditors' reports on internal control if they have higher state ownership, lower managerial ownership, sanction records, audit committees, non-Big Four auditors as their auditors of annual financial reports, unqualified auditors' opinions on financial reports, less board independence, after controlling for firm size, liabilities, performance, and history. Moreover, as compared to a control group that exhibits similar characteristics, firms that voluntarily disclose auditors' reports on internal control are associated with positive earnings quality and negative cost of equity capital.
文摘This paper aims to investigate the issue relating to the internal control system of listed companies, according to the publication of the new framework COSO (Committee of Sponsoring Organization of Treadway Commission) updated in 2013. Since December 15, 2014 came into force the new framework on the procedures to implement and to make use of an efficient system of internal control for listed companies. With the introduction of the new framework, the original framework of 1992 will be considered as the preceding version. The recent 2013 updated framework is considered as an "evolution rather than a revolution". This study will explore the latest changes brought to the 1992 COSO framework and the opportunity arising with the transition to COSO 2013.