The effect of internal control quality and internal control disclosure regulation on executive perks: A quasi natural experiment from China

Author:

Fonseka Mohan1,Al Farooque Omar2,Yang Xing3,Qilin Wu4

Affiliation:

1. School of Management Xi'an Jiaotong University Shaanxi Peoples' Republic of China

2. UNE Business School University of New England Armidale New South Wales Australia

3. Business School The University of Auckland Auckland New Zealand

4. Nanyang Business School Nanyang Technological University Singapore

Abstract

This paper investigates the effect of internal control quality and mandatory internal control disclosure regulation on executive perks in China. Based on a sample of Chinese firms between 2008 and 2019, this study finds that internal control quality and the mandatory disclosure regulation limit both under‐consumption and over‐consumption of executive perks. Furthermore, the mandatory regulation strengthens the relationship between internal control quality and the levels of executive perks. The results are consistent across alternative measures of key variables and are robust to endogeneity analyses. The findings of this study have important implications for policymakers, managers, and investors seeking to understand the determinants of the abnormal consumption of executive perks and the associated economic consequences of the internal control system.

Funder

Central University Basic Research Fund of China

Publisher

Wiley

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3