Analyst Coverage and Internal Control Weakness

• Main Authors: Yeh, Ting-Tsen, 葉亭岑
• Other Authors: Chou, Ting-Kai
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/23226515361016303229

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 102 === 　　This study examines the relationship between analyst coverage and internal control problems. The primary issue is whether analyst coverage will mitigate internal control problem under Section 404 of Sarbanes- Oxley Act. We find firms with analyst coverage have less internal control weakness than those without it. Besides, the negative association between analyst coverage and internal control. In other words, the internal control weakness is negative with the extent of analyst coverage for firms being followed. Finally, we introduce analysts’ characteristics to test further and find analysts, having more experience on firms, working more years as analysts, and being hired by large broker, are more likely to enhance the effective internal control. Collectively, analysts have monitor effect on internal control.