Essays on Internal Control Deficiency and Firm's Diversification

Essays on Internal Control Deficiency and Firm's Diversification

Bibliographic Details
Main Author: Yomchinda, Nontawan
Language:English
Published: University of Cincinnati / OhioLINK 2012
Subjects:
Accounting
Internal controls
Diversification
Accruals
SOX
Online Access:http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705
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spelling ndltd-OhioLink-oai-etd.ohiolink.edu-ucin13372887052021-08-03T06:15:34Z Essays on Internal Control Deficiency and Firm's Diversification Yomchinda, Nontawan Accounting Internal controls Diversification Accruals SOX Previous studies on internal control deficiencies found relationships between firm diversification and internal control weakness. This study investigates the associations between a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s diversification and the effectiveness of internal control. This study is comprised of two parts. The first part confirms the relationship between diversification and internal control as well as further investigates whether global and industrial diversification signals risk of internal control weakness resulting from agency problems and information asymmetry. It is hypothesized that diversification associates with a higher probability of internal control deficiency and vice versa. The result indicates that such probability actually associates only with industrial diversification and not global diversification. In the second part, the relationship between a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s diversification and the effectiveness of internal control is investigated by adding another variable which proxies for earnings management. These results suggest that earnings management, as measured by a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s accruals quality, together with diversification, could alter the effectiveness of internal control. The findings obtained from both parts of this study provide empirical evidence that the risk of internal control deficiency increases with the risks of the agency problems and information asymmetry. 2012-10-16 English text University of Cincinnati / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705 http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws.
collection NDLTD
language English
sources NDLTD
topic Accounting
Internal controls
Diversification
Accruals
SOX
spellingShingle Accounting
Internal controls
Diversification
Accruals
SOX
Yomchinda, Nontawan
Essays on Internal Control Deficiency and Firm's Diversification
author Yomchinda, Nontawan
author_facet Yomchinda, Nontawan
author_sort Yomchinda, Nontawan
title Essays on Internal Control Deficiency and Firm's Diversification
title_short Essays on Internal Control Deficiency and Firm's Diversification
title_full Essays on Internal Control Deficiency and Firm's Diversification
title_fullStr Essays on Internal Control Deficiency and Firm's Diversification
title_full_unstemmed Essays on Internal Control Deficiency and Firm's Diversification
title_sort essays on internal control deficiency and firm's diversification
publisher University of Cincinnati / OhioLINK
publishDate 2012
url http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705
work_keys_str_mv AT yomchindanontawan essaysoninternalcontroldeficiencyandfirmsdiversification
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