TY  - JOUR
TI  - CEO Characteristics and Internal Control Quality
AU  - Lin, Yu‐Chen
AU  - Wang, Ying‐Chieh
AU  - Chiou, Jeng‐Ren
AU  - Huang, Hua‐Wei
PY  - 2013
PB  - Wiley
LA  - eng
AB  - AbstractManuscript TypeEmpiricalResearch Question/IssueThis study investigates the influence of CEO characteristics on internal control quality in the U.S.Research Findings/InsightsUsing 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 ImplicationsThis 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 ImplicationsThis 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.
UR  - https://doi.org/10.1111/corg.12042
DO  - 10.1111/corg.12042
T2  - Corporate governance: an international review
VL  - 22
IS  - 1
SN  - 1467-8683
SN  - 0964-8410
SP  - 24-42
UR  - https://www.pollux-fid.de/r/cr-10.1111/corg.12042
H1  - Pollux (Fachinformationsdienst Politikwissenschaft)
ER  -