文章基本信息

标题：The effect of internal control environment on the value relevance of earnings
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作者：Hyun-Ah Lee
期刊名称：Investment Management & Financial Innovations
印刷版ISSN：1810-4967
电子版ISSN：1812-9358
出版年度：2019
卷号：16
期号：2
页码：182-194
DOI：10.21511/imfi.16(2).2019.16
语种：English
出版社：LLC “Consulting Publishing Company “Business Perspectives”
摘要：This study examines whether a suitable control environment increases the value rel evance of earnings by providing greater assurance on the reliability of financial reporting.Specifically,the level of suitable control environment is assessed by considering the quantity and quality of IC personnel,which are closely related to the personnel integrity/ethical values,competence,and authority/responsibility.Using a sample of 1,834 firm-year observations of Korean listed companies covering 2005–2010,the au?thor finds that earnings are more value relevant when the increase in the average work experience of IC personnel is greater.However,no evidence is found that the value relevance of earnings is positively associated with the increase in the proportion of IC personnel.The findings suggest that a suitable control environment,established by deployment of qualified IC personnel with more work experience,improves the IC ef?fectiveness and,thus,provides greater assurance on the reliability of financial reporting to market investors.
关键词：Sarbanes-Oxley Act;internal control system;internal control personnel;financial reporting;work experience