Chernobai, Anna; Yasuda, Yukihiro - In: Journal of Banking & Finance 37 (2013) 5, pp. 1524-1542
We investigate the disclosures of material weaknesses in internal control mandated for Japanese firms under the 2006 Financial Instruments and Exchange Law. We find that the presence of a material weakness is more likely for firms that are younger, have better growth prospects, have a volatile...