1. Cross-shareholding network and internal control quality.
- Author
-
Qiu, Xuemei, Yan, Jiangtao, and Cheng, Zhice
- Subjects
INTERNAL auditing ,QUALITY control ,AGENCY costs ,BUSINESS enterprises - Abstract
This paper investigates the relationship between cross-shareholding networks and internal controls quality using a sample of all listed A-share firms in China during 2007–2020. We find that the higher the centrality of cross-shareholding networks, the lower the quality of internal control. This finding passes a series of robustness regressions. Moreover, we further test the influence channel of cross-shareholding on the internal control quality and find that the agency cost is the corresponding intermediary. That is, the cross-shareholding network increases the agency cost of the firm and thus reduces the quality of internal control. [ABSTRACT FROM AUTHOR]
- Published
- 2024
- Full Text
- View/download PDF