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Can Executives‘ Ties Affect the Quality of Internal Control?——Empirical Evidence from Chinese Listed Enterprises |
ZHANG Ping1,XU Wei2 |
1. Nanjing University 2.
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Abstract This paper empirically study the effects of executives’ ties on the internal control, from the perspective of inter-corporate networks . Using data of listed companies in China stock market from 2006 to 2013,we finds that: interlocked firms are shared similar internal control behaviors, that is, the higher the internal control quality of tied corporate,the better internal control quality of focal corporate; Further study found that the similarity is higher when the shared executives has accounting-relevant position or experience. The evidence indicates that the social network of executives plays an important role in the quality of firms’ internal control, this offers the practical implications for those whom want to improve their internal control quality.
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Received: 24 November 2015
Published: 15 April 2016
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Corresponding Authors:
XU Wei
E-mail: 102506887@qq.com
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