The impact of ineffective internal control on the value relevance of accounting information

• Main Authors: HU, Nan, QI, Baolei, TIAN, Gaoliang, YAO, Lee, ZENG, Zhen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: ineffective internal control; book value; earnings; value relevance; market value; Accounting; Databases and Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/8019; https://ink.library.smu.edu.sg/context/sis_research/article/9022/viewcontent/The_impact_of_ineffective_internal_control_on_the_value_relevance_of_accounting_information_pv.pdf
• Institution: Singapore Management University

This paper investigates the value relevance of accounting information in the presence of ineffective internal control (IIC). Based on Ohlson's valuation model, this paper first documents that IIC can directly affect a firm's market value after control cost of capital, corporate governance,...