Does internal control quality improve earnings persistence? Evidence from China's a-share market

2020 ◽  
pp. 101890
Author(s):  
Yuanyuan GONG ◽  
Yongjun YAN ◽  
Nianxiang YANG
Keyword(s):  
Internal Control ◽  
Earnings Persistence ◽  
Control Quality ◽  
A Share

scholarly journals Internal Control Quality, Enterprise Environmental Protection Investment and Finance Performance: An Empirical Study of China’s A-Share Heavy Pollution Industry

2020 ◽  
Vol 17 (17) ◽  
pp. 6082
Author(s):  
Liu Yang ◽  
Han Qin ◽  
Quanxin Gan ◽  
Jiafu Su
Keyword(s):  
Environmental Management ◽  
Financial Performance ◽  
Environmental Protection ◽  
Internal Control ◽  
Positive Impact ◽  
Third Party ◽  
Corporate Value ◽  
Control Quality ◽  
Heavy Pollution ◽  
A Share

As an important measure of enterprise governance, internal control can enhance the organizational rationality of the enterprise, ensure that the enterprise consciously assumes social responsibility for the protection of the natural environment and resources, and promote the sustainable development of the national economy. Using data from China’s A-share heavy pollution industry listed companies from 2009 to 2018, this study explored the relationships among internal control quality, enterprise environmental protection investment, and financial performance. The results show that the quality of internal control has a significant positive impact on enterprise environmental protection investment and financial performance. Enterprise environmental protection investment has a significant positive impact on financial performance and plays a partial intermediary role in the positive impact of internal control quality on financial performance. While expanding the theory of resource-based concepts, this study clarified the positive impact of corporate environmental management and practical behavior on corporate value and provides a theoretical basis for companies to actively implement environmental protection responsibilities, strengthen internal environmental management capabilities, and enhance corporate value. At the same time, it also provides a basis for the government to issue relevant environmental protection policies, strengthen enterprise internal control construction guidelines, and encourage third-party organizations to evaluate the effectiveness of enterprise internal control.

Internal Control Quality and Bank Risk-Taking and Performance

2020 ◽  
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Downside Risk ◽  
Internal Controls ◽  
Bank Risk ◽  
Material Weakness ◽  
Control Quality ◽  
Interest Income ◽  
Upside Risk ◽  
And Performance

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

scholarly journals The impact of inclusive business on ethical values & internal control quality: an accounting perspective

2016 ◽  
Vol 5 (4) ◽  
pp. 106-113 ◽  
Author(s):  
Tamer El Nashar
Keyword(s):  
Probability Distribution ◽  
Internal Control ◽  
Random Variable ◽  
Ethical Values ◽  
Discrete Probability ◽  
Control Quality ◽  
Inclusive Business ◽  
Potential Impact ◽  
Business Approach ◽  
The Impact

The objective of this paper is to examine the impact of inclusive business on the internal ethical values and the internal control quality while conceiving the accounting perspective. I construct the hypothesis for this paper based on the potential impact on the organizations’ awareness to be directed to the inclusive business approach that will significantly impact the culture of the organizations then the ethical values and the internal control quality. I use the approach of the expected value and variance of random variable test in order to analyze the potential impact of inclusive business. I support the examination by discrete probability distribution and continuous probability distribution. I find a probability of 85.5% to have a significant potential impact of the inclusive business by 100% score on internal ethical values and internal control quality. And to help contribute to sustainability growth, reduce poverty and improve organizational culture and learning.

scholarly journals FINANCING CONSTRAINTS, INTERNAL CONTROL QUALITY AND COST STICKINESS

2021 ◽  
Vol 22 (5) ◽  
pp. 1231-1251
Author(s):  
Yufeng Chen ◽  
Yanbai Ma
Keyword(s):  
Internal Control ◽  
Financing Constraints ◽  
Equity Financing ◽  
Promoting Effect ◽  
Moderation Effect ◽  
Listed Firms ◽  
Control Quality ◽  
Internal Financing ◽  
The Impact ◽  
Cost Stickiness

Managers think that retaining resources is more effective than rebuilding resources after exhausting them. However, financing constraints have brought great uncertainty to this resource decision-making implemented by managers. Data of manufacturing listed firms in China from 2009 to 2017 are used here to explore the impact of financing constraints on cost stickiness. This paper finds that internal financing constraints have a significant promoting effect on cost stickiness, while debt financing constraints and equity financing constraints have a significant restraining effect on cost stickiness. The internal control quality has a moderation effect on this relationship. In a firm with low quality of internal control, internal financing constraints can enhance cost stickiness, but the weakening effect of external financing on cost stickiness is not affected by internal control quality.

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