Market reaction to disclosure of internal control deficiencies in separation of duties

As the basis work for the development of capital market, internal control deficiencies and its disclosure has become the focus of the community. Based on Shanghai A-share listed companies' data in 2009, using the event study method, We find that the separation of duties deficiencies holds the h...

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Bibliographic Details
Main Authors: Xiaorong Du, Zhengting Xie
Format: Conference Proceeding
Language:English
Subjects:
Companies
Control systems
Event study
Guidelines
Internal control deficiencies
Market reaction
Monitoring
Risk management
Separation of duties
Stock markets
Online Access:Request full text
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Summary:As the basis work for the development of capital market, internal control deficiencies and its disclosure has become the focus of the community. Based on Shanghai A-share listed companies' data in 2009, using the event study method, We find that the separation of duties deficiencies holds the highest proportion of internal control deficiencies, the appearance is complex, the disclosure of internal control deficiencies in separation of duties will have a significant negative market reaction. We suggested regulators should develop the classification standards of internal control deficiencies disclosure as soon as possible, listed companies should attach great importance to monitoring and disclosure of internal control deficiencies.
DOI:10.1109/AIMSEC.2011.6010660