87 0

Earnings management and instances of material weaknesses reported under Sections 302 and 404

Title
Earnings management and instances of material weaknesses reported under Sections 302 and 404
Author
권신형
Keywords
Internal control weakness; material weakness; earnings management; Sarbanes-Oxley Act (SOX); multiple instances
Issue Date
2021-03
Publisher
ROUTLEDGE JOURNALS
Citation
ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, Page. 1-20
Abstract
Sections 302 and 404 of the 2002 Sarbanes-Oxley Act require firms to disclose material weaknesses (MWs) in internal controls. We investigate the association of single and multiple instances of MWs with earnings management. Multiple instances are positively associated with earnings management for Section 302 and 404 firms, whereas single instances have no such association for either firm type. Thus, MWs that are not remediated within one quarter or year tend to be positively associated with earnings management and, in particular, with income-decreasing earnings management. Multiple instances of MWs for such firms can therefore provide critical information for auditors and investors.
URI
https://www.tandfonline.com/doi/full/10.1080/16081625.2019.1681282https://repository.hanyang.ac.kr/handle/20.500.11754/166932
ISSN
1608-1625; 2164-2257
DOI
10.1080/16081625.2019.1681282
Appears in Collections:
COLLEGE OF BUSINESS AND ECONOMICS[E](경상대학) > ACCOUNTING AND TAX(회계세무학과) > Articles
Files in This Item:
There are no files associated with this item.
Export
RIS (EndNote)
XLS (Excel)
XML


qrcode

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

BROWSE