Abstract:
This paper examines the relation between internal control quality, the number of analysts following, accuracy of analyst earnings forecasts and forecast dispersion. Using a sample of A-share listed firms from 2007 to 2016, we find that: First, firms with better internal control attract more analysts. Second, analysts forecast accuracy is positively related to internal control quality. However, this positive relation only exists in the overestimated subsample. Third, forecast dispersion is not significantly related to internal control quality. This study not only contributes to the literature on both analyst behavior and internal control, but also offers valuable implications to regulars.
张龙平、王军只和张军,2010,《内部控制鉴证对会计盈余质量的影响研究——基于沪市 A 股公司的经验证据》,《审计研究》第2期,第83~90页.
[13]
Altamuro, J. and A. Beatty,2010,“How Does Internal Control Regulation Affect Financial Reporting?”Journal of Accounting and Economics, 49(1),pp. 58~74.
[14]
Ashbaugh-Skaife H.,D. W. Collins, and W. Kinney,2007, “The Discovery and Reporting of Internal Control Deficiencies prior to SOX-mandated Audits,”Journal of Accounting and Economics,44(1),pp.166~192.
[15]
Ashbaugh-Skaife H.,D. W. Collins,W. R. Kinney, and R. LaFond,2008, “The Effect of SOX Internal Control Deficiencies and Their Remediation on Accrual Quality,”The Accounting Review, 83(1),pp.217.
[16]
Behn B. K.,C. Jong-Hag, and T. Kang, 2008, “Audit Quality and Properties of Analyst Earnings Forecasts,”The Accounting Review, 83(2),pp.327~349.
[17]
Beneish M.,M. Billings,Leslie D.Hodder,2008, “Internal Control Weaknesses and Information Uncertainty,”The Accounting Review, 83(3), pp. 665~703.
[18]
Bhushan, R,1989, “Firm Characteristics and Analyst Following,” Journal of Accounting and Economics, 11(2-3),pp.255~274.
[19]
Botosan, C. A. and M. S. Harris, 2000, “Motivations for a Change in Disclosure Frequency and Its Consequences: An Examination of Voluntary Quarterly Segment Disclosures,”Journal of Accounting Research,38(2),pp. 329~353.
[20]
Bushman R. M.,J. D. Piotroski, and A. J. Smith,2004, “What Determines Corporate Transparency?”Journal of Accounting Research,42(2),pp. 207~252.
[21]
Byard,D.and K. W. Shaw, 2003, “Corporate Disclosure Quality and Properties of Analysts' Information Environment,”Journal of Accounting, Auditing & Finance, 18(3),pp.355.
[22]
Chen J., Chan K. C., Dong W., andZhang F,2017, “Internal Control and Stock Price Crash Risk: Evidence from China,”European Accounting Review, 26(1), 125~152.
[23]
Chen H., Dong W., Han H., andZhou, N, forthcoming, “A Comprehensive and Quantitative Internal Control Index: Construction, Validation, and Impact,”Review of Quantitative Finance and Accounting,DOI: 10.1007/s11156-016-0593-x
Costello, A. M. and R. Wittenberg-Moerman,2011, “The Impact of Financial Reporting Quality on Debt Contracting: Evidence from Internal Control Weakness Reports,”Journal of Accounting Research, 49(1),pp. 97~136.
[26]
Donelson D. C., Ege M. S., & McInnis J. M,2016, “Internal Control Weaknesses and Financial Reporting Fraud,”Auditing: A Journal of Practice & Theory, 36(3), 45~69.
[27]
Doyle J. T.,G. Weili, and S. McVay, 2007a, “Accruals Quality and Internal Control over Financial Reporting,”The Accounting Review, 82(5),pp 1141~1170.
[28]
Doyle J.,W. Ge, and S. McVay, 2007b, “Determinants of Weaknesses in Internal Control over Financial Reporting,”Journal of Accounting and Economics, 44(1-2),pp. 193~223.
[29]
Engel E.,R. M. Hayes, and X. Wang,2007, “The Sarbanes-Oxley Act and Firms' Going-private Decisions,”Journal of Accounting and Economics, 44(1),pp.116~145.
[30]
Ettredge M.,C. Li, and L. Sun, 2006, “The Impact of SOX Section 404 Internal Control Quality Assessment on Audit Delay in the SOX Era,”Auditing: A Journal of Practice & Theory, 25(2),pp. 1~23.
[31]
Feng M.,C. Li, and S.McVay,2009, “Internal Control and Management Guidance,” Journal of Accounting and Economics,48(2-3),pp. 190~209.
[32]
Goh, B. W. and D. Li,2011, “Internal Controls and Conditional Conservatism,”The Accounting Review, 86(3),pp. 975~1005.
[33]
Healy P. M.,A. P. Hutton, and K. G. Palepu, 1999, “Stock Performance and Intermediation Changes Surrounding Sustained Increases in Disclosure”,Contemporary Accounting Research, 16(3),pp. 485~520.
[34]
Hirst, D. E. and P. E. Hopkins,1998, “Comprehensive Income Reporting and Analysts' Valuation Judgments,”Journal of Accounting Research,36, pp. 47~75.
[35]
Hirst D. E.,P. E. Hopkins, and Wahlen,2004, “Fair Values, Income Measurement, and Bank Analysts' Risk and Valuation Judgments,”The Accounting Review,79(2), pp.454~472.
[36]
Kandel. E. and N. Pearson, 1995, “Differential Interpretation of Public Signals and Trade in Speculative Markets”,Journal of Political Economy,103(August):831~853.
[37]
Lang, M. H. and R. J. Lundholm, 1996, “Corporate Disclosure Policy and Analyst Behavior,”The Accounting Review,71(4),pp. 467~492.
[38]
Lehavy R.,L. Feng, and K. Merkley, 2011, “The Effect of Annual Report Readability on Analyst Following and the Properties of Their Earnings Forecasts,” The Accounting Review,86(3),pp.1087~1115.
[39]
Lobo G., Wang C., Yu X., & Zhao Y,2017, “Material Weakness in Internal Controls and Stock Price Crash Risk,”Journal of Accounting, Auditing & Finance, 0148558X17696761.
[40]
Lu H.,G. Richardson, and S. Salterio, 2011, “Direct and Indirect Effects of Internal Control Weaknesses on Accrual Quality: Evidence from a Unique Canadian Regulatory Setting,”Contemporary Accounting Research, 28(2),pp.675~707.
[41]
Waymire, G, 1986, “Additional Evidence on the Accuracy of Analyst Forecasts Before and After Voluntary Management Earnings Forecasts,”The Accounting Review, 61(1),pp.129~142.
[42]
Zhang, I. X, 2007, “Economic Consequences of the Sarbanes-Oxley Act of 2002,”Journal of Accounting and Economics, 44(1),pp.74~115.
[43]
Zhou J., Kim J. B., andYeung I,2013, “ Material Weakness in Internal Control and Stock Price Crash Risk: Evidence from SOX Section 404 Disclosure,” Working paper.
