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The impact of internal control reports on information precision and market liquidity
Internal control weaknesses
Public information precision
Private information precision
|Issue Date: ||2010-04-09 14:43:32 (UTC+8)|
This dissertation extends prior research on internal control weaknesses (hereafter ICW) by examining the impact of internal control weakness and their remediation on information precision and market liquidity for firms filed Section 404 reports with the SEC. First, I find that the presence of ICW is associated with lower precisions of public and private information contained in analysts’ earnings forecasts, which in turn increase overall information uncertainty. Second, I find that market liquidity is significantly lower for ICW firms. Moreover, this dissertation provides evidence that firm-level control weaknesses have stronger impact on public information precision and market liquidity than account-specific control weaknesses. Finally, this dissertation suggests that ICW remediation firms have higher information precision and market liquidity, compared to non-remediation firms. My results are robust after controlling for the endogeneity problem and other sensitivity tests.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0094353502|
|Data Type: ||thesis|
|Appears in Collections:||[會計學系] 學位論文|
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