Internal control weakness and bank loan contracting: Evidence from SOX section 404 disclosures

• Main Authors: KIM, Jeong-Bon, SONG, Byron Y., ZHANG, Liandong
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2011
• 主題: Internal control weakness; Loan contracting; Loan ownership structure; Sarbanes-Oxley Act (SOX); Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/1701; https://ink.library.smu.edu.sg/context/soa_research/article/2728/viewcontent/InternalControlWeakness_2010_pp.pdf
• 機構: Singapore Management University

Using a sample of borrowing firms that disclosed internal control weaknesses (ICW) under Section 404 of the Sarbanes-Oxley Act, this study compares various features of loan contracts between firms with ICW and those without ICW. Our results show the following. First, the loan spread is higher for IC...