Internal Control and Operational Efficiency

• Main Authors: CHENG, Qiang, GOH, Beng Wee, KIM, Jae Bum
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Internal control; operational efficiency; Sarbanes-Oxley Act; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1210; https://ink.library.smu.edu.sg/context/soa_research/article/2209/viewcontent/InternalControlOperationalEfficiency_2017.pdf
• Institution: Singapore Management University

We examine whether effective internal control over financial reporting has implications beyond that of financial reporting to firm operational efficiency. We predict and find that operational efficiency, derived from frontier analysis, is significantly lower among firms disclosing material weaknesse...