Internal Control Disclosure and Corporate Governance: Empirical Research from Chinese Listed Companies

Leng, Jianfei; Ding, Yiran

doi:10.4236/ti.2011.24029

Cited by 23 publications

(35 citation statements)

References 8 publications

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“…Disclosure indices in the literature (Deumes and Knechel, 2008;Abraham and Cox, 2007;Van de Poel and Vanstraelen, 2011;Leng and Ding, 2011) are built mainly on checklists of items. We argue that these indices cannot capture the variety of content that management can disclose on the ICS.…”

Section: Insert Table 1 About Here 42 Measurement Of Ics Disclosurementioning

confidence: 99%

Board monitoring and internal control system disclosure in different regulatory environments

Michelon

Bozzolan

Beretta

2015

Journal of Applied Accounting Research

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Purpose\ud – The purpose of this paper is to investigate two research questions. Is internal control system (ICS) disclosure, as a monitoring mechanism, associated with the characteristics of the board of directors, particularly the audit committee as the main board committee devoted to the effectiveness of ICS? Does the regulatory environment, particularly the regulation on ICS disclosure as an external governance/monitoring mechanism play a role in shaping the relationship between board monitoring and ICS disclosure and, if so, how?\ud \ud Design/methodology/approach\ud – The authors study the ICS disclosure of 149 companies listed in four European financial markets (London, Paris, Frankfurt and Milan), each with its own regulations about ICS disclosure, during a six-year period (2003-2008).\ud \ud Findings\ud – The findings support an inverse association between the extent of ICS disclosure and the proxies for board monitoring. The authors also find a statistically significant negative relationship between board monitoring and substantial ICS disclosure but no relationship between board monitoring and formal ICS disclosure. The evidence also shows that the regulatory environment moderates the relationship between board monitoring and ICS disclosure by introducing trade-offs among monitoring mechanisms.\ud \ud Research limitations/implications\ud – An important caveat of the research is that it does not explore if and how investors use ICS disclosure to evaluate the firm.\ud \ud Practical implications\ud – The authors propose a framework for the analysis of ICS disclosure that overcomes limitations of previous literature that has neglected the importance of the content beyond the extent of ICS disclosure. Through this framework researchers, practitioners and standard setters are able to separate merely descriptive, formal un-useful disclosure (boilerplate information) on the composing elements of the ICS from substantial disclosure regarding the functioning of the ICS (monitoring function).\ud \ud Originality/value\ud – The authors also provide evidence that the relationship between board monitoring and ICS disclosure varies with the content of the information communicated, thus offering guidance for future research not to focus on measuring the extent or quantity of disclosure but on the variety and complexity of the information communicated

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Section: Insert Table 1 About Here 42 Measurement Of Ics Disclosurementioning

confidence: 99%

Board monitoring and internal control system disclosure in different regulatory environments

Michelon

Bozzolan

Beretta

2015

Journal of Applied Accounting Research

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“…Elbannan (2009) suggested that corporate governance strength is positively related to internal control quality in U.S. firms disclosing internal control weaknesses in their Securities and Exchange Commission filings. Leng and Ding (2011) aimed to research the influence of corporate governance structure on internal control disclosure. They discovered that internal control disclosure is positively related to directors' remuneration, two part-time posts of chairman and general manager, directors' education level and supervisors' education level, and it negatively related to the proportion of state ownership.…”

Section: Information and Communicationmentioning

confidence: 99%

The Role of Internal Control in Enhancing Corporate Governance: Evidence from Jordan

Al-Zwyalif¹

2015

IJBM

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This study aimed to examine the role of internal control elements: control environment, risk assessment, control activities, communication and information, and monitoring, in enhancing the corporate governance pillars, which are: accountability, fairness, responsibility, and transparency. The study also seeks to determine the extent to which this commitment contributes to strengthening these pillars in the context of Jordanian insurance companies.In order to achieve the objectives of this study, a questionnaire was developed and distributed to a sample of non-executive members of the board of directors, financial managers, heads of accounting departments and internal auditors of 27 Jordanian insurance companies. The total number of questionnaires distributed was 162 questionnaires, of which 123 questionnaires were returned and were valid for data analysis, with a response rate of approximately 76%.Based on the results of the statistical analysis, the study indicated that the commitment to all elements of internal control contributes to strengthening the corporate governance pillars at a high degree. The study also revealed that the commitment to each element of internal control contribute to strengthening the pillars of corporate governance at a high degree. These results show that the internal control has a significant role in enhancing the corporate governance pillars in Jordanian insurance companies, and the successes of corporate governance requires compliance with all elements of internal control.

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“…To date, there have been a number of researches in developed and developing countries to measure corporate disclosure on financial and non-financial companies, for example: Al-Janadi, Rahman, and Omar (2013); Alves, Rodrigues, and Canadas (2012); Barako (2007) ;Bilal, Tufail, Khan, Abbas, and Saeed (2013);Botosan (1997) ;Fekete, Matis, and Lukács (2008); Healy and Palepu (2001); Hossain and Hammami (2009) ;Ianniello, Mainardi, and Rossi (2013); Jensen and Meckling (1976); Leng and Ding (2011);Li and Zhao (2011);Li and Qi (2008);Lokman (2011);Nandi and Ghosh (2013); Omran and Abdelrazik (2013);Rouf (2011);Sukthomya (2011);Vu (2012);Qu (2011);Lan, Wang, and Zhang (2013);. A few of their studies will be chosen to help understand the nature, methodology, and findings of this study.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Influencing the Voluntary Disclosure of Vietnamese Listed Companies

Hieu¹,

Lan²

2015

JMAA

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Internal Control Disclosure and Corporate Governance: Empirical Research from Chinese Listed Companies

Cited by 23 publications

References 8 publications

Board monitoring and internal control system disclosure in different regulatory environments

Board monitoring and internal control system disclosure in different regulatory environments

The Role of Internal Control in Enhancing Corporate Governance: Evidence from Jordan

Factors Influencing the Voluntary Disclosure of Vietnamese Listed Companies

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