| Summary: | 碩士 === 銘傳大學 === 國際企業學系碩士在職專班 === 103 === Based on a sample of Taiwan listed firms over the period of 2007-2013, this study investigates the relationship between corporate governance and internal control weaknesses. All the data are collected from the database of the Taiwan Economic Journal (TEJ). The information regarding internal control weaknesses is collected from “Crisis Milestones” on Taiwan Corporate Credit Risk ( TCRI ) database of TEJ. In this study, we investigate the impact of the family ownership, institutional ownership, and the proportion of independent directors and supervisors’ on the number of internal control weaknesses.
Our results indicate that family ownership and institutional ownership are negatively related to the number of internal control weaknesses. In addition, the higher proportion of independent directors and supervisors’ decrease the likelihood of internal control weaknesses. Therefore, an effective mechanism of corporate governance has an important influence on internal control quality.
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