Product market competition, state ownership and internal control quality

Zhang, Chuancai; Chen, Hanwen

doi:10.1080/21697213.2016.1252078

Cited by 13 publications

(13 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To make the model as simple as possible, only the most basic positive feedback through the established database is explicitly presented. Prices and other factors determining the attractiveness of a product are deliberately excluded (Li et al, 2010;Zhang & Chen, 2016).…”

Section: Discussionmentioning

confidence: 99%

Product Market Share Using A Model Of Two Competitors

Baryshnikova¹

2021

Knowledge, Man and Civilization - Proceedings of International Scientific Congress «Knowledge, Man and Civilization» (ISCKMC 20

View full text Add to dashboard Cite

show abstract

Section: Discussionmentioning

confidence: 99%

Product Market Share Using A Model Of Two Competitors

Baryshnikova¹

2021

Knowledge, Man and Civilization - Proceedings of International Scientific Congress «Knowledge, Man and Civilization» (ISCKMC 20

View full text Add to dashboard Cite

show abstract

“…Then, the internal control index we use was obtained through weighting in accordance with AHP and the variation coefficient method. This method and the methodology of the internal control index have also been widely used in recent research [7,[16][17][18]69,70].…”

Section: Sample and Datamentioning

confidence: 99%

“…A larger value of EPU_1 (EPU_2, EPU_3) indicates higher economic policy uncertainty that year. Following Doyle et al [10], Leone [73], Wang et al [65], Zhang et al [7], and Rao et al [31], we control 10 firm-specific characteristics, including firm size (SIZE), firm age (Lage), return on equity (ROE), sales growth (Growth), foreign sales (Export), auditor firm (Big4), firm business segments (Bsegment), mergers and acquisitions (MA), restructuring (RSTR), and financial leverage (Lev); and two corporate governance characteristics, including board independence (Ind) and size of board (BSIZE). The Industry dummy is included to control for the industry fixed effect.…”

Section: Empirical Modelsmentioning

confidence: 99%

“…For firms, the intrinsic demand for sustainable development is closely related to the objectives of internal control, specifically: ensuring achievement of an organization's objectives in terms of operational effectiveness and efficiency, reliable financial reporting, compliance with applicable laws and regulations, and safeguarding of assets [6], which serve as the foundation for ensuring the sustainable and steady development of firms. Better internal control promises to effectively guard against operation risks [7] and solve agency problems [8] caused by information asymmetry, thereby promoting a more effective allocation of resources.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Firms’ Sustainability: Does Economic Policy Uncertainty Affect Internal Control?

Liao

Wang

2019

Sustainability

View full text Add to dashboard Cite

This paper studies whether economic policy uncertainty (EPU) influences internal control (IC). Exploiting EPU as an exogenous shock and using unique internal control index data at the firm level from China, we can make causal inferences about the EPU effect on IC, and provide new insight into firms’ sustainability. Our results show that firms tend to cope with higher EPU by improving IC, indicating their efforts to ensure sustainability development. We also find that this trend is intensified for firms localized in regions with a lower marketization degree, state-owned firms, or firms with fewer analysts following. Further analyses show that EPU significantly reduces the internal control auditing fees, hence backing up the association between EPU and IC. Unlike the previous literature, this paper shows the important role of internal control for firms in coping with EPU, which is of crucial significance to how firms seek to adhere to sustainable development and how economic policy works best.

show abstract

“…In column (2) of Table 7, we investigate the role of market pressure. The literature shows that highly competitive market can promote the improvement of internal control because effective controls in turn help the firm gain a competitive advantage (e.g., [55][56][57]). Thus, managers in the competitive markets have a strong incentive to overcome the negative emotions exacerbated by polluted air.…”

Section: Analysis Of the External Environmentmentioning

confidence: 99%

The Effects of Air Pollution on Firms’ Internal Control Quality: Evidence from China

et al. 2019

View full text Add to dashboard Cite

Research on the consequences of air pollution has tended to focus on the macro and environmental effects on human health, often ignoring micro effects. In this paper, we empirically investigate the micro-institutional costs of air pollution, and our results show that in China, firms’ internal control quality is significantly and negatively associated with the severity of air pollution in its home city and that the most significant effects of air pollutants are those of PM2.5 and SO2, confirming that air pollution incurs micro-institutional costs. We find that this effect varies depending on factors related to the environment, ownership structure, the demographic traits of the board of directors’ chairman, and employees. Further analysis indicates that air pollution can degrade the quality of accounting information, provoke agency problems, and lower firm value. This study reveals the micro-institutional costs of air pollution and identifies the mechanisms by which air pollution affects the quality of macroeconomic development. By so doing, this study enables China’s government and public to better its understanding of air pollution and recognize the value of the Blue-Sky Protection Campaign. This study also reinforces the importance of the transition toward a new economic mode based on “high-quality development,” which will play a vital role in China’s new era.

show abstract

Product market competition, state ownership and internal control quality

Cited by 13 publications

References 29 publications

Product Market Share Using A Model Of Two Competitors

Product Market Share Using A Model Of Two Competitors

Firms’ Sustainability: Does Economic Policy Uncertainty Affect Internal Control?

The Effects of Air Pollution on Firms’ Internal Control Quality: Evidence from China

Contact Info

Product

Resources

About