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Essays on Internal Control Deficiency and Firm's Diversification

Yomchinda, Nontawan
http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705

Abstract Details

2012, PhD, University of Cincinnati, Business: Business Administration.
Previous studies on internal control deficiencies found relationships between firm diversification and internal control weakness. This study investigates the associations between a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s diversification and the effectiveness of internal control. This study is comprised of two parts. The first part confirms the relationship between diversification and internal control as well as further investigates whether global and industrial diversification signals risk of internal control weakness resulting from agency problems and information asymmetry. It is hypothesized that diversification associates with a higher probability of internal control deficiency and vice versa. The result indicates that such probability actually associates only with industrial diversification and not global diversification. In the second part, the relationship between a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s diversification and the effectiveness of internal control is investigated by adding another variable which proxies for earnings management. These results suggest that earnings management, as measured by a firm¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿¿s accruals quality, together with diversification, could alter the effectiveness of internal control. The findings obtained from both parts of this study provide empirical evidence that the risk of internal control deficiency increases with the risks of the agency problems and information asymmetry.
Pradyot Sen, PhD (Committee Chair)
Hui Guo, PhD (Committee Member)
Yan Yu, PhD (Committee Member)
115 p.
Accounting
Internal controls; Diversification; Accruals; SOX;

Recommended Citations

Citations

  • Yomchinda, N. (2012). Essays on Internal Control Deficiency and Firm's Diversification [Doctoral dissertation, University of Cincinnati]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705

    APA Style (7th edition)

  • Yomchinda, Nontawan. Essays on Internal Control Deficiency and Firm's Diversification. 2012. University of Cincinnati, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705.

    MLA Style (8th edition)

  • Yomchinda, Nontawan. "Essays on Internal Control Deficiency and Firm's Diversification." Doctoral dissertation, University of Cincinnati, 2012. http://rave.ohiolink.edu/etdc/view?acc_num=ucin1337288705

    Chicago Manual of Style (17th edition)

ucin1337288705
582
© 2012, all rights reserved.
This open access ETD is published by University of Cincinnati and OhioLINK.