We examine the association between disclosure of internal control deficiencies (ICDs) and information asymmetry (IA) in the U.S. secondary loan market. We also investigate which types of ICDs intensify or mitigate conditions of information asymmetry in the same market. Relying on loan...

This paper provides causal evidence that a firm's operating cost structure is an important determinant of its leverage. We design a quasi-natural experiment exploiting the implementation of Sarbanes-Oxley Act Section 404 to provide us with exogenous variation in the proportion of a company's...

Directors help determine the strategic direction of a corporation and are responsible for ensuring the institution has a good system of internal control. Banking institutions without a strategic direction emphasizing sound lending practices that promote the long-run financial health and...

The enactment of the Sarbanes-Oxley Act (SOX) contributes to the increase in frequency of special items on income statements. This increase is not concentrated in special item types implicated in earnings management or restructuring activities, nor does it depend on the sign of special items....

This article aims to identify, based on the reporting practices of companies listed on the Polish and German capital market, the pillars of internal control and risk management systems in relation to financial reporting. The survey examined disclosures concerning the control systems over...

The importance of an effective internal audit function in South African municipalities have been recognised insofar as internal audit functions are legally mandated to exist within municipalities. This also means that legally, internal audit has certain mandates which must be fulfilled in order...

Research shows that audit fees have increased after the SOX ban on providing non-audit services (NAS) to audit clients, but the reasons behind it have been unclear. Using an auction-modeling approach, this study aims to bridge this gap by providing a theoretical explanation for this empirical...

The present paper studies the impact of the SOX act to the choice of payment in Mergers & Acquisitions for firms with different capital structures. Use Probit and Tobit models to access the firms' pre-acquisition leverage levels as well as the leverage changes of firms because of the SOX act....