In this study, we investigate whether trade credit is associated with internal control effectiveness. Using a sample of U.S. publicly listed firms over the period 2006-2018, we find robust evidence that internal control effectiveness firms have a lower level of trade credit. Our additional...

Research Question/Issue: The objective of this study is to examine whether the effectiveness of internal governance is associated with internal control material weaknesses. We employ the concept of internal governance as the checks-and-balances mechanism that subordinate executives apply to the...