CEO Characteristics and Internal Control Quality

被引：106

作者：

Lin, Yu-Chen ^{[1
]}

Wang, Ying-Chieh ^{[2
]}

Chiou, Jeng-Ren

Huang, Hua-Wei

机构：

[1] Natl Cheng Kung Univ, Dept Accountancy, Tainan 701, Taiwan

[2] Ming Chuan Univ, Accounting Dept, Tao Yuan, Taiwan

来源：

CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW | 2014年 / 22卷 / 01期

关键词：

Corporate Governance; CEO characteristics; entrenchment theory; Sarbanes-Oxley Section 404; material internal control weakness; SECTION; 404; GENDER-DIFFERENCES; ORGANIZATIONAL COMMITMENT; GENERATIONAL-DIFFERENCES; MANAGERIAL ENTRENCHMENT; CORPORATE GOVERNANCE; NONAUDIT SERVICES; CONTROL WEAKNESS; RENT EXTRACTION; RISK-TAKING;

D O I：

10.1111/corg.12042

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

Manuscript TypeEmpirical Research Question/IssueThis study investigates the influence of CEO characteristics on internal control quality in the U.S. Research Findings/InsightsUsing a sample of 4,374 ExecuComp non-financial firms, we find that CEO entrenchment and age are significantly associated with a material internal control weakness disclosure (MW) under Sarbanes-Oxley Section 404 (SOX 404). Our results demonstrate that entrenchment and age may affect CEOs' behavior in response to the SOX 404 internal control requirements. Theoretical/Academic ImplicationsThis study provides empirical support for the influence of CEO characteristics on material internal control weakness. As a result, the effects of internal control mechanisms are likely to be decreased in firms with entrenched and younger CEOs, consistent with entrenchment theory. Practitioner/Policy ImplicationsThis study offers insights to regulators and lawmakers interested in the effects of CEO characteristics on internal control weakness. Importantly, it points out that CEO entrenchment and age are likely to affect the strength of internal control mechanisms.

引用

页码：24 / 42

页数：19

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