Social Ties and Internal Control Quality

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Project title

Code/計畫編號

MOST103-2410-H424-009

Translated Name/計畫中文名

社會關係與內部控制品質

Project Coordinator/計畫主持人

Shu-Miao Lai

Funding Organization/主管機關

National Science and Technology Center for Disaster Reduction

Department/Unit

Department of Accounting, KNU

Website

https://www.grb.gov.tw/search/planDetail?id=8318673

Year

2014

Start date/計畫起

01-08-2014

Expected Completion/計畫迄

31-07-2015

Bugetid/研究經費

245千元

ResearchField/研究領域

管理科學

本研究檢測董事會以及審計委員會與 CEO 間的社會網絡關係是否影響內部控制品質。社會網絡關係可能會損及董事會以及審計委員會的獨立性，降低其對經理人的監督效力，導致內部控制品質低落。本研究預期在控制許多公司治理變數後，董事會以及審計委員會與 CEO 間的社會網絡關係與內部控制重大性缺失呈現正向關係。此外，本研究進一步假設如果新雇用的董事會成員以及審計委員會成員與 CEO 間具有社會網絡關係時，將無法改善該公司後續年度的內部控制重大性缺失。整體而言，本研究顯示董事會以及審計委員會與 CEO 間的社會網絡關係會降低其對內部控制品質的監督效力。 This study examines the effect of social connections between members of boards and audit committees and the CEO on internal control quality. I hypothesize that social connections between members of boards and audit committees and the CEO undermine board and audit committee independence, resulting in poor internal control quality. Consistent with this notion, I expect that after controlling for an exhaustive of variables used in the corporate governance literature, there is positive association between social connections between boards or audit committees and the CEO and material weaknesses in internal control over financial reporting. To further examine my conjecture, I investigate whether social connections affect subsequent remediation of internal control weaknesses. I except that hiring a new CEO with social connection to board and audit committee is negatively association with remediation of material weaknesses in internal control. Overall, my study has implication suggests that social connections between members of boards and audit committees and the CEO undermine the intensity of board and audit committee monitoring in internal control over financial reporting.

Keyword(s)

內部控制
董事會
審計委員會
社會關係
internal control
board of directors
audit committee
social connections.

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Social Ties and Internal Control Quality

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