The Association between Analyst Coverage and Internal Control Weaknesses
碩士 === 元智大學 === 商學碩士班(會計學程) === 100 === After the Enron and Worldcom scandals, investors have been concerning about the credibility of companies’ financial reports. Sarbanes-Oxley Act (SOX), promulgated by the U.S. government in 2002, requires public firms to ensure their financial reports are fairl...
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| Format: | Others |
| Language: | zh-TW |
| Online Access: | http://ndltd.ncl.edu.tw/handle/31396970782566396896 |
| Summary: | 碩士 === 元智大學 === 商學碩士班(會計學程) === 100 === After the Enron and Worldcom scandals, investors have been concerning about the credibility of companies’ financial reports. Sarbanes-Oxley Act (SOX), promulgated by the U.S. government in 2002, requires public firms to ensure their financial reports are fairly presented and with adequate disclosure. SOX 404 further enforces managements to access internal control framework and reveal relative material weakness in internal control system. This legislation improves corporate transparency and thus provides more information about companies’ internal conditions for investors. In recent years, analysts acting as information transmitters between companies and investors have also put more emphasis on the companies’ internal control and management. Therefore, we investigate the relation between internal control and analyst coverage. Our empirical results suggest that internal control deficiency is negatively associated with analyst coverage, which means that analysts play an important role in firm-level control of supervision.
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