Consequences of Weak Internal Controls Over Financial Reporting: Foreign versus U.S. Firms
Abstract
For a sample of both foreign cross-listed firms and U.S. firms that report material weaknesses in internal control over financial reporting (MWICFR) from 2007- 2016, we utilize event studies and multivariate techniques to examine if there are differential consequences of reporting MWICFR across the two groups. Specifically, we examine the reactions of the equity and debt markets, external auditors, and the firm’s governance. We find that after receiving an audit report with material weakness issues, foreign firms face a significantly more negative stock market reaction and decrease in credit ratings. These firms are more likely to receive a going-concern audit opinion than U.S. firms and are also significantly less likely to change their CEOs or CFOs. Additionally, we find that the strength of the home market regulatory environment mitigates the negative equity and debt market reactions for foreign firms. Lastly, we also find that the presence of foreign auditors for foreign firms alleviates audit market consequences, resulting in a lower likelihood of auditor resignations and going-concern audit opinions. This paper extends and complements the existing literature on cross-listed firms by documenting differences in the consequences for firms reporting weaknesses in ICFR and exploring the traits driving these differences.
Downloads
Download data is not yet available.
References
Altamuro, J. M., & Beatty, A. (2010, February). How does internal control regulation affect financial reporting? Journal of accounting & Economics, 49(1-2), 58-74.
Ashbaugh-Skaife, H., Collins, D. W., Kinney, W. R. Jr., & LaFond, R. (2008, January). The effect of SOX internal control deficiencies and their remediation on accrual quality. The Accounting Review, 83(1), 217-250.
Ashbaugh-Skaife, H., Collins, D. W., Kinney, W. R. Jr., & LaFond, R. (2009, March). The effect of SOX internal control deficiencies on firm risk and cost of equity. Journal of Accounting Research, 47(1), 1-43.
Asthana, S., Raman, K. K., & Xu, H. (2015, September). US-listed foreign companies’ choice of a US-based versus home country-based big N principal auditor and the effect on audit fees and earnings quality. Accounting Horizons, 29(3), 631-666.
Atilgan, Y., Ghosh, A., Yan, M., & Zhang, J. (2015, August). Cross‐listed bonds, information asymmetry, and conservatism in credit ratings. Journal of Money, Credit & Banking, 47(5), 897-929.
Bamber, L. S., Jiang, J., & Wang, I. Y (2010, July). What’s my style? The influence of top managers on voluntary corporate financial disclosure. The Accounting Review, 85(4), 1131-1162.
Beneish, M. D., Billings, M. B., & Hodder, L. D. (2008, May). Internal control weaknesses and information uncertainty. The Accounting Review, 83(3), 665-703.
Berkman, H., & Truong, C. (2009, March). Event day 0? After-hours earnings announcements. Journal of Accounting Research, 47(1), 71-103.
Brown, N. C., Pott, C., & Woempener, A. (2014, January-February). The effect of internal control and risk management regulation on earnings quality: Evidence from Germany. Journal of Accounting & Public Policy, 33(1), 1-31.
Caban-Garcia, M. T., Figueroa, C. B. R., & Petruska, K. A. (2017). The impact of culture on internal control weaknesses: Evidence from firms that cross-list in the US. Journal of International Accounting Research, 16(3), 119-145.
Cheng, B., Srinivasan, S., & Yu, G. (2014). Securities litigation risk for foreign companies listed in the US. Working paper. Retrieved March 12, 2018, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2163864.
Cheng, M., Dhaliwal, D., & Zhang, Y. (2013). Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting? Journal of Accounting & Economics, 56(1), 1-18.
Doidge, C., Karolyi, G. A., & Stulz, R. M. (2004, February). Why are foreign firms listed in the U.S. worth more? Journal of Financial Economics, 71(2), 205-238.
Doyle, J. T., Ge, W., & McVay, S. (2007a, October). Accruals quality and internal control over financial reporting. The Accounting Review, 82(5), 1141-1170.
Doyle, J. T., Ge, W., & McVay, S. (2007b, September). Determinants of weaknesses in internal control over financial reporting. Journal of Accounting & Economics, 44(1-2), 193-223.
Dyreng, S. D. & Lindsey, B. P. (2009, December). Using financial accounting data to examine the effect of foreign operations located in tax havens and other countries on US multinational firms’ tax rates. Journal of Accounting Research, 47(5), 1283-1316.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010, July). The effects of executives on corporate tax avoidance. The Accounting Review, 85(4), 1163-1189.
Ettredge, M., Heintz, J., Li, C., & Scholz, S. (2011, March). Auditor realignments accompanying implementation of SOX 404 ICFR reporting requirements. Accounting Horizons, 25(1), 17-39.
EY. (2017). An analysis of trends in the US capital markets. Retrieved March 15, 2019 from https://www.ey.com/Publication/vwLUAssets/an-analysis-of-trends-in-the-us- capital-markets/$FILE/ey-an-analysis-of-trends-in-the-us-capital-markets.pdf.
Feng, M., Li, C., & McVay, S. E. (2009, December). Internal control and management guidance. Journal of Accounting & Economics, 48(2/3), 190-209.
Feng, M., Li, C., McVay, S. E., & Skaife, H. (2015, March). Does ineffective internal control over financial reporting affect a firm’s operations? Evidence from firms’ inventory management. The Accounting Review, 90(2), 529-557.
Ferguson, L. (2015). Big four audit quality can differ widely--even at the same firm. Retrieved April 10, 2019 from https://www.marketwatch.com/story/big-four-audit- quality-can-differ-widely-even-at-the-same-firm-2015-11-17.
Garg, M., Gul, F. A., & Wickramanayake, J. (2017, July). Evaluating the credibility of voluntary internal controls certification. Journal of International Accounting Research, 16(3), 91-117. Https://doi.org/10.2308/jiar-51856.
Ge, W. & McVay, S. E. (2005, September). The disclosure of material weaknesses in internal control after the Sarbanes–Oxley Act. Accounting Horizons, 19(3), 137- 158.
Goh, B. W., & Li, D. (2011, May). Internal controls and conditional conservatism. The Accounting Review, 86(3), 975-1005.
Gong, G., Ke, B., & Yu, Y. (2013, February). Home country investor protection, ownership structure and cross-listed firms’ compliance with SOX-mandated internal control deficiency disclosures. Contemporary Accounting Research, 30(4), 1490-1523.
Hail, L., & Leuz, C. (2009, September). Cost of capital effects and changes in growth expectations around U.S. cross-listings. Journal of Financial Economics, 93(3), 428- 454.
Hammersley, J. S., Myers, L. A., & Zhou, J. (2012). The failure to remediate previously disclosed material weaknesses in internal controls. Auditing: A Journal of Practice & Theory, 31(2), 73-111.
Hammersley, J. S., Myers, L. A., & Shakespeare, C. (2008). Market reactions to the disclosure of internal control weaknesses and to the characteristics of those weaknesses under section 302 of the Sarbanes-Oxley act of 2002. Review of Accounting Studies, 13(1), 141-165.
Harp, N. L. & Barnes, B. G. (2018, January). Internal control weakness and acquisition performance. The Accounting Review, 93(1), 235-258. Https://doi.org/ 10.2308/accr-51780.
Hogan, C. E., & Wilkins, M. S. (2008). Evidence on the audit risk model: do auditors increase audit fees in the presence of internal control deficiencies? Contemporary Accounting Research, 25(1), 219-242.
Hoitash, U., Hoitash, R., & Bedard, J. C. (2008, May). Internal control quality and audit pricing under the Sarbanes-Oxley Act. Auditing: A Journal of Practice & Theory 27(1), 105-126.
Hoitash, U., Hoitash, R., & Bedard, J. C. (2009, May). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, 84(3), 839-867.
Hope, O. -K., Kang, T., & Kim, J. W. (2013, June). Voluntary disclosure practices by foreign firms cross-listed in the United States. Journal of Contemporary Accounting & Economics, 9(1), 50-66.
Johnstone, K., Li, C., & Rupley, K. H. (2011, Spring). Changes in corporate governance associated with the revelation of internal control material weaknesses and their subsequent remediation. Contemporary Accounting Research, 28(1), 331- 383.
Kanagaretnam, K., Lobo, G. J., Ma, C., & Zhou, J. (2016, January). National culture and internal control material weaknesses around the world. Journal of Accounting, Auditing & Finance, 31(1), 28-50.
Karolyi, A. G. (2006, March). The world of cross-listings and cross-listings of the world: Challenging conventional wisdom. Review of Finance, 10(1), 99-152.
Kaufmann, D., & Kraay, A. (2016). Governance indicators for 1996–2016. Washington, D.C.: World Bank Policy Research.
Kizirian, T. G., Mayhew, B. W., & Sneathen, L. D. Jr. (2005, November). The impact of management integrity on audit planning and evidence. Auditing: A Journal of Practice & Theory, 24(2), 49-67.
Lang, M., Raedy, J. S., & Wilson, W. (2006, October). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting & Economics, 42(1-2), 255-283.
Lang, M., Raedy, J. S., & Yetman, M. H. (2003, February). How representative are firms that are cross‐listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41(2), 363-386.
Lawrence, A., Minutti-Meza, M., & Vyas, D. (2018). Is operational control risk informative of financial reporting deficiencies? Auditing: A Journal of Practice & Theory, 37(1), 139-165.
Leuz, C. (2003, February). Discussion of ADRs, analysts, and accuracy: Does cross‐ listing in the United States improve a firm’s information environment and increase market value? Journal of Accounting Research, 41(2), 347-362.
Leuz, C., Nanda, D., & Wysocki, P. D. (2003, September). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69(3), 505-527.
Li, C., Sun, L., & Ettredge, M. (2010, May). Financial executive qualifications, financial executive turnover, and adverse SOX 404 opinions. Journal of Accounting & Economics, 50(1), 93-110.
Li, X. (2014, August). The Sarbanes-oxley act and cross-listed foreign private issuers. Journal of Accounting & Economics, 58(1), 21-40.
Ogneva, M., Subramanyam, K. R., & Raghunandan, K. (2007). Internal control weakness and cost of equity: Evidence from SOX section 404 disclosures. The Accounting Review, 82(5), 1255-1297.
Raghunandan, K., & Rama, D. V. (2006, May). SOX Section 404 material weakness disclosures and audit fees. Auditing: A Journal of Practice & Theory, 25(1), 99-114. Https://doi.org/10.2308/aud.2006.25.1.99.
Reese Jr., W. A., & Weisbach, M. S. (2002, October). Protection of minority shareholder interests, cross-listings in the United States, and subsequent equity offerings. Journal of Financial Economics, 66(1), 65-104.
Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019). The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting & Economics, 68(2-3), 101246. Https://doi.org/10.1016/j.jacceco.2019.101246.
Securities & Exchange Commission (SEC). (2002, August 29). Certification of disclosure in companies’ quarterly and annual reports (release nos. 34-46079, file nos. S7-21-02). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2003, June 5). Management’s reports on internal control over financial reporting and certification of disclosure in exchange act periodic reports (release nos. 33-8238, 34-47986, ic-26068, file nos. S7-40-02; S7-06-03). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2010). Internal control over financial reporting in exchange act period reports of non-accelerated filers (release nos. 33-9142; 34-62914). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2013). Accessing the U.S. capital markets--a brief overview for foreign private issuers. Washington, D.C.: U.S. Securities and Exchange Commission. Retrieved March 5, 2019 from https://www.sec.gov/divisions/corpfin/internatl/foreign-private-issuers- overview.shtml#IIIB1.
Seetharaman, A., Gul, F. A., & Lynn, S. G. (2002, February). Litigation risk and audit fees: Evidence from UK firms cross-listed on US markets. Journal of Accounting & Economics, 33(1), 91-115.
Skaife, H. A., Veenman, D., & Wangerin, D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting & Economics, 55(1), 91-110.
Srinivasan, S., Wahid, A. S., & Yu, G. (2015, May). Admitting mistakes: Home country effect on the reliability of restatement reporting. The Accounting Review, 90(3), 1201-1240.
Wilford, A. L. (2016, May-June). Internal control reporting and accounting standards: A cross-country comparison. Journal of Accounting & Public Policy, 35(3), 276-302.
Zhang, J. (2018). Public governance and corporate fraud: Evidence from the recent anti-corruption campaign in China. Journal of Business Ethics, 148(2), 375-396.
Ashbaugh-Skaife, H., Collins, D. W., Kinney, W. R. Jr., & LaFond, R. (2008, January). The effect of SOX internal control deficiencies and their remediation on accrual quality. The Accounting Review, 83(1), 217-250.
Ashbaugh-Skaife, H., Collins, D. W., Kinney, W. R. Jr., & LaFond, R. (2009, March). The effect of SOX internal control deficiencies on firm risk and cost of equity. Journal of Accounting Research, 47(1), 1-43.
Asthana, S., Raman, K. K., & Xu, H. (2015, September). US-listed foreign companies’ choice of a US-based versus home country-based big N principal auditor and the effect on audit fees and earnings quality. Accounting Horizons, 29(3), 631-666.
Atilgan, Y., Ghosh, A., Yan, M., & Zhang, J. (2015, August). Cross‐listed bonds, information asymmetry, and conservatism in credit ratings. Journal of Money, Credit & Banking, 47(5), 897-929.
Bamber, L. S., Jiang, J., & Wang, I. Y (2010, July). What’s my style? The influence of top managers on voluntary corporate financial disclosure. The Accounting Review, 85(4), 1131-1162.
Beneish, M. D., Billings, M. B., & Hodder, L. D. (2008, May). Internal control weaknesses and information uncertainty. The Accounting Review, 83(3), 665-703.
Berkman, H., & Truong, C. (2009, March). Event day 0? After-hours earnings announcements. Journal of Accounting Research, 47(1), 71-103.
Brown, N. C., Pott, C., & Woempener, A. (2014, January-February). The effect of internal control and risk management regulation on earnings quality: Evidence from Germany. Journal of Accounting & Public Policy, 33(1), 1-31.
Caban-Garcia, M. T., Figueroa, C. B. R., & Petruska, K. A. (2017). The impact of culture on internal control weaknesses: Evidence from firms that cross-list in the US. Journal of International Accounting Research, 16(3), 119-145.
Cheng, B., Srinivasan, S., & Yu, G. (2014). Securities litigation risk for foreign companies listed in the US. Working paper. Retrieved March 12, 2018, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2163864.
Cheng, M., Dhaliwal, D., & Zhang, Y. (2013). Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting? Journal of Accounting & Economics, 56(1), 1-18.
Doidge, C., Karolyi, G. A., & Stulz, R. M. (2004, February). Why are foreign firms listed in the U.S. worth more? Journal of Financial Economics, 71(2), 205-238.
Doyle, J. T., Ge, W., & McVay, S. (2007a, October). Accruals quality and internal control over financial reporting. The Accounting Review, 82(5), 1141-1170.
Doyle, J. T., Ge, W., & McVay, S. (2007b, September). Determinants of weaknesses in internal control over financial reporting. Journal of Accounting & Economics, 44(1-2), 193-223.
Dyreng, S. D. & Lindsey, B. P. (2009, December). Using financial accounting data to examine the effect of foreign operations located in tax havens and other countries on US multinational firms’ tax rates. Journal of Accounting Research, 47(5), 1283-1316.
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010, July). The effects of executives on corporate tax avoidance. The Accounting Review, 85(4), 1163-1189.
Ettredge, M., Heintz, J., Li, C., & Scholz, S. (2011, March). Auditor realignments accompanying implementation of SOX 404 ICFR reporting requirements. Accounting Horizons, 25(1), 17-39.
EY. (2017). An analysis of trends in the US capital markets. Retrieved March 15, 2019 from https://www.ey.com/Publication/vwLUAssets/an-analysis-of-trends-in-the-us- capital-markets/$FILE/ey-an-analysis-of-trends-in-the-us-capital-markets.pdf.
Feng, M., Li, C., & McVay, S. E. (2009, December). Internal control and management guidance. Journal of Accounting & Economics, 48(2/3), 190-209.
Feng, M., Li, C., McVay, S. E., & Skaife, H. (2015, March). Does ineffective internal control over financial reporting affect a firm’s operations? Evidence from firms’ inventory management. The Accounting Review, 90(2), 529-557.
Ferguson, L. (2015). Big four audit quality can differ widely--even at the same firm. Retrieved April 10, 2019 from https://www.marketwatch.com/story/big-four-audit- quality-can-differ-widely-even-at-the-same-firm-2015-11-17.
Garg, M., Gul, F. A., & Wickramanayake, J. (2017, July). Evaluating the credibility of voluntary internal controls certification. Journal of International Accounting Research, 16(3), 91-117. Https://doi.org/10.2308/jiar-51856.
Ge, W. & McVay, S. E. (2005, September). The disclosure of material weaknesses in internal control after the Sarbanes–Oxley Act. Accounting Horizons, 19(3), 137- 158.
Goh, B. W., & Li, D. (2011, May). Internal controls and conditional conservatism. The Accounting Review, 86(3), 975-1005.
Gong, G., Ke, B., & Yu, Y. (2013, February). Home country investor protection, ownership structure and cross-listed firms’ compliance with SOX-mandated internal control deficiency disclosures. Contemporary Accounting Research, 30(4), 1490-1523.
Hail, L., & Leuz, C. (2009, September). Cost of capital effects and changes in growth expectations around U.S. cross-listings. Journal of Financial Economics, 93(3), 428- 454.
Hammersley, J. S., Myers, L. A., & Zhou, J. (2012). The failure to remediate previously disclosed material weaknesses in internal controls. Auditing: A Journal of Practice & Theory, 31(2), 73-111.
Hammersley, J. S., Myers, L. A., & Shakespeare, C. (2008). Market reactions to the disclosure of internal control weaknesses and to the characteristics of those weaknesses under section 302 of the Sarbanes-Oxley act of 2002. Review of Accounting Studies, 13(1), 141-165.
Harp, N. L. & Barnes, B. G. (2018, January). Internal control weakness and acquisition performance. The Accounting Review, 93(1), 235-258. Https://doi.org/ 10.2308/accr-51780.
Hogan, C. E., & Wilkins, M. S. (2008). Evidence on the audit risk model: do auditors increase audit fees in the presence of internal control deficiencies? Contemporary Accounting Research, 25(1), 219-242.
Hoitash, U., Hoitash, R., & Bedard, J. C. (2008, May). Internal control quality and audit pricing under the Sarbanes-Oxley Act. Auditing: A Journal of Practice & Theory 27(1), 105-126.
Hoitash, U., Hoitash, R., & Bedard, J. C. (2009, May). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, 84(3), 839-867.
Hope, O. -K., Kang, T., & Kim, J. W. (2013, June). Voluntary disclosure practices by foreign firms cross-listed in the United States. Journal of Contemporary Accounting & Economics, 9(1), 50-66.
Johnstone, K., Li, C., & Rupley, K. H. (2011, Spring). Changes in corporate governance associated with the revelation of internal control material weaknesses and their subsequent remediation. Contemporary Accounting Research, 28(1), 331- 383.
Kanagaretnam, K., Lobo, G. J., Ma, C., & Zhou, J. (2016, January). National culture and internal control material weaknesses around the world. Journal of Accounting, Auditing & Finance, 31(1), 28-50.
Karolyi, A. G. (2006, March). The world of cross-listings and cross-listings of the world: Challenging conventional wisdom. Review of Finance, 10(1), 99-152.
Kaufmann, D., & Kraay, A. (2016). Governance indicators for 1996–2016. Washington, D.C.: World Bank Policy Research.
Kizirian, T. G., Mayhew, B. W., & Sneathen, L. D. Jr. (2005, November). The impact of management integrity on audit planning and evidence. Auditing: A Journal of Practice & Theory, 24(2), 49-67.
Lang, M., Raedy, J. S., & Wilson, W. (2006, October). Earnings management and cross listing: Are reconciled earnings comparable to US earnings? Journal of Accounting & Economics, 42(1-2), 255-283.
Lang, M., Raedy, J. S., & Yetman, M. H. (2003, February). How representative are firms that are cross‐listed in the United States? An analysis of accounting quality. Journal of Accounting Research, 41(2), 363-386.
Lawrence, A., Minutti-Meza, M., & Vyas, D. (2018). Is operational control risk informative of financial reporting deficiencies? Auditing: A Journal of Practice & Theory, 37(1), 139-165.
Leuz, C. (2003, February). Discussion of ADRs, analysts, and accuracy: Does cross‐ listing in the United States improve a firm’s information environment and increase market value? Journal of Accounting Research, 41(2), 347-362.
Leuz, C., Nanda, D., & Wysocki, P. D. (2003, September). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69(3), 505-527.
Li, C., Sun, L., & Ettredge, M. (2010, May). Financial executive qualifications, financial executive turnover, and adverse SOX 404 opinions. Journal of Accounting & Economics, 50(1), 93-110.
Li, X. (2014, August). The Sarbanes-oxley act and cross-listed foreign private issuers. Journal of Accounting & Economics, 58(1), 21-40.
Ogneva, M., Subramanyam, K. R., & Raghunandan, K. (2007). Internal control weakness and cost of equity: Evidence from SOX section 404 disclosures. The Accounting Review, 82(5), 1255-1297.
Raghunandan, K., & Rama, D. V. (2006, May). SOX Section 404 material weakness disclosures and audit fees. Auditing: A Journal of Practice & Theory, 25(1), 99-114. Https://doi.org/10.2308/aud.2006.25.1.99.
Reese Jr., W. A., & Weisbach, M. S. (2002, October). Protection of minority shareholder interests, cross-listings in the United States, and subsequent equity offerings. Journal of Financial Economics, 66(1), 65-104.
Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019). The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting & Economics, 68(2-3), 101246. Https://doi.org/10.1016/j.jacceco.2019.101246.
Securities & Exchange Commission (SEC). (2002, August 29). Certification of disclosure in companies’ quarterly and annual reports (release nos. 34-46079, file nos. S7-21-02). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2003, June 5). Management’s reports on internal control over financial reporting and certification of disclosure in exchange act periodic reports (release nos. 33-8238, 34-47986, ic-26068, file nos. S7-40-02; S7-06-03). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2010). Internal control over financial reporting in exchange act period reports of non-accelerated filers (release nos. 33-9142; 34-62914). Washington, D.C.: U.S. Securities and Exchange Commission.
Securities & Exchange Commission (SEC). (2013). Accessing the U.S. capital markets--a brief overview for foreign private issuers. Washington, D.C.: U.S. Securities and Exchange Commission. Retrieved March 5, 2019 from https://www.sec.gov/divisions/corpfin/internatl/foreign-private-issuers- overview.shtml#IIIB1.
Seetharaman, A., Gul, F. A., & Lynn, S. G. (2002, February). Litigation risk and audit fees: Evidence from UK firms cross-listed on US markets. Journal of Accounting & Economics, 33(1), 91-115.
Skaife, H. A., Veenman, D., & Wangerin, D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting & Economics, 55(1), 91-110.
Srinivasan, S., Wahid, A. S., & Yu, G. (2015, May). Admitting mistakes: Home country effect on the reliability of restatement reporting. The Accounting Review, 90(3), 1201-1240.
Wilford, A. L. (2016, May-June). Internal control reporting and accounting standards: A cross-country comparison. Journal of Accounting & Public Policy, 35(3), 276-302.
Zhang, J. (2018). Public governance and corporate fraud: Evidence from the recent anti-corruption campaign in China. Journal of Business Ethics, 148(2), 375-396.
Published
2021-11-07
How to Cite
BAKARICH, Kathleen M; BARANEK, Devon.
Consequences of Weak Internal Controls Over Financial Reporting: Foreign versus U.S. Firms.
Journal of Accounting, Business and Management (JABM), [S.l.], v. 28, n. 2, p. 34-58, nov. 2021.
ISSN 2622-2167.
Available at: <https://journal.stie-mce.ac.id/index.php/jabminternational/article/view/548>. Date accessed: 26 apr. 2024.
doi: https://doi.org/10.31966/jabminternational.v28i2.548.
Section
Articles
