Family entrenchment and internal control: Evidence from S&P 1500 firms

• Main Authors: CHEN, Xia, FENG, Mei, LI, Chan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Family firms; Internal control weakness; Family entrenchment; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1826; https://ink.library.smu.edu.sg/context/soa_research/article/2853/viewcontent/Family_entrenchment_int_control_2020_sv.pdf
• Institution: Singapore Management University

We examine whether family owners exploit internal control weaknesses for entrenchment purposes and whether the public disclosure requirement under SOX 404 helps alleviate this entrenchment. We find supportive evidence for both questions. In the initial years of SOX 404 implementation (2004 and 2005)...