CEO characteristics and internal control quality

Yu Chen Lin, Ying Chieh Wang, Jeng Ren Chiou, Hua Wei Huang

研究成果: Article

26 引文 斯高帕斯(Scopus)


Manuscript Type: Empirical Research Question/Issue: This study investigates the influence of CEO characteristics on internal control quality in the U.S. Research Findings/Insights: Using a sample of 4,374 ExecuComp non-financial firms, we find that CEO entrenchment and age are significantly associated with a material internal control weakness disclosure (MW) under Sarbanes-Oxley Section 404 (SOX 404). Our results demonstrate that entrenchment and age may affect CEOs' behavior in response to the SOX 404 internal control requirements. Theoretical/Academic Implications: This study provides empirical support for the influence of CEO characteristics on material internal control weakness. As a result, the effects of internal control mechanisms are likely to be decreased in firms with entrenched and younger CEOs, consistent with entrenchment theory. Practitioner/Policy Implications: This study offers insights to regulators and lawmakers interested in the effects of CEO characteristics on internal control weakness. Importantly, it points out that CEO entrenchment and age are likely to affect the strength of internal control mechanisms.

頁(從 - 到)24-42
期刊Corporate Governance: An International Review
出版狀態Published - 2014 一月


All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation