| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 104 === Companies can improve their internal control quality by providing incentives for top managers or strengthen corporate governance. The purpose of this study is to examine whether the relationship between top managers' compensation and the quality of internal control will be affect by corporate governance or not. My research period is from 2006 to 2014. Corporate governance quality is developed by a comprehensive index based on the median of the size of boards, the proportion of members that are independent directors, the rate of institutional investors’ holding, the proportion of members that are managers. I use probit two-stage method to examine the effect of corporate governance quality on the relationship between top managers' compensation and the quality of internal control. The results show that firms with higher corporate governance quality have higher relationship between top managers’ compensation and internal control quality. Besides, unlike foreign, it’s hard to collect dates like the quality of internal control in ours country, so there is no empirical study on the relationship between top managers' compensation and the quality of internal control because data regarding internal control is unavailable in Taiwan. Therefore, the contribution of this study is not only fill this research gap, but also can push the government to ask companies to disclose information about internal control.
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