دانلود رایگان مقاله انگلیسی ویژگی های فردی اعضای هیئت مدیره و ضعف کنترل داخلی - الزویر 2018

Abstract

This study examines the relationships between the individual characteristics of board members and internal control weaknesses using data from Chinese listed firms from 2007 to 2015. The results indicate that the individual characteristics of board members including education, experience, certification ,integrity and training are related to internal control deficiencies. The results also show that the individual characteristics of board chairmen are related to internal control problems. The overall results demonstrate that internal control quality is better, internal control weaknesses are reduced and weakness remediation is more likely to be applied in firms in which board members and board chairpersons have stronger qualifications. Furthermore, ownership has a moderating impact on the relationship between board characteristics and internal control.However, board behavior does not mediate the relationship between board members and internal control. Thus, it is suggested that board characteristics and internal control are directly linked. It is useful for directors to know that the characteristics of board members do make a difference.

Conclusion

In conclusion, this research examines the influences of board characteristics on specific internal control problems and weakness remediation before and after the enactment of China SOX. China’s new regulations and unique setting provide a good research opportunity. Most American papers (e.g., Krishnan, 2005; Zhang et al., 2007; Lin et al., 2011) have studied the associations among audit committees, management and internal control. According to China SOX, the boards of directors accept the main responsibility for internal control. Therefore, we hypothesize that the education, training, experience, certification and integrity of board members are related to internal control weaknesses. We also expect that dominant shareholder nature and board behavior have an influence on the correlation between the board and internal control. H1 (board member characteristics) and H2 (characteristics of chairmen) are supported to some extent. The findings suggest that the individual characteristics (education, experience, certification, integrity and training) of Chinese board members and board chairmen are related to internal control weaknesses and weakness remediation. Their relationships are direct and are not affected by board behavior but are influenced by ownership nature. The results provide strong evidence that board members play an invaluable role in Chinese internal control. In light of the current debate on the quality of Chinese boards of directors and the effectiveness of China SOX, our findings provide market regulators and stakeholders in China and other countries with timely evidence regarding the likely outcomes of similar standards in their jurisdictions. Our study indicates that requiring boards of directors to accept responsibility for internal control with the help of the boards of supervisors and management could benefit internal control.