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Abstract This study examines the association between internal control risk and audit fees under the voluntary adopting regime of the Basic Standard of Enterprise Internal Control in China. We find that audit fees are positively related to disclosed internal control weaknesses (ICWs). In particular, they are significantly associated with non-financial reporting-related, but not with financial reporting-related, ICWs. Our results also indicate that voluntary assurance in internal control reports can mitigate higher audit fees associated with ICWs. Our study provides timely evidence relating to the debate on whether the scope of internal control should be expanded to non-financial reporting-related areas. [ABSTRACT FROM AUTHOR]

This paper investigates the determinants and economic consequences of disclosure of internal control weaknesses (ICWs) by Chinese listed firms under the voluntary disclosure regime over 2010–2011. We find that the probability of firms disclosing ICWs is not only associated with firm characteristics such as profitability, age and business complexity, but is also strongly related to the unique attributes of corporate governance and ownership structure in Chinese listed firms, e.g. the independence of the supervisory board, political connections, concentration of the top 3 shareholders' ownership and tradability of shares. Our results show that the severity of the ICWs disclosed is negatively and significantly associated with earnings response coefficients (ERCs), and audit assurance of ICRs has a significant moderating effect on the relationship between ICWs and ERCs. Our research adds further evidence to support the implementation of SOX-type regulations globally. [ABSTRACT FROM AUTHOR]

Northern Guangdong is an important part of Nanling tungsten-tin metallogenic belt, South China. The tungsten mineralization in this area consists of mainly quartz-wolframite vein-type mineralization, with W-Sn polymetallic deposits mostly distributed at the outer contact zone between concealed Late Jurassic granitic stocks and Cambrian-Ordovician low-metamorphosed sandstones and shales. Molybdenite Re-Os and muscovite Ar/Ar isotopic dating of three typical tungsten vein-type deposits (Yaoling, Meiziwo, and Jubankeng) in northern Guangdong, show that two episodes of Late Jurassic W-Sn polymetallic mineralization occurred in this area: an early episode during the Late Jurassic (158-159 Ma) represented by the Yaoling, Hongling, and Meiziwo tungsten deposits, and a younger event during the Early Cretaceous (138 Ma) represented by the Jubankeng deposit. Analysis of available radiometric ages of several W-Sn deposits in the Nanling region indicate that these deposits formed at several intervals during the Mesozoic at 90-100, 134-140, 144-162, and 210-235 Ma, and that large-scale W-Sn mineralization in this region occurred mainly between 150 and 160 Ma. [ABSTRACT FROM AUTHOR]

• Board cultural diversity boosts Chinese corporate innovation as the local government interferes less. • Government intervention limits cognitive dynamics of a culturally diverse board. • Power distance, individualism, long-term orientation and indulgence cultural dimensions mainly drive the finding. This study explores whether the impact of board cultural diversity on corporate innovativeness is contingent on the firm's exposure to local government intervention. Using Chinese firm-year observations spanning 2008–2016, we find that the positive impact of board cultural diversity on corporate innovativeness is more (less) pronounced for Chinese firms subjecting to a low (high) level of local government intervention. Further, we find that foreign directors from countries with lower power distance, and greater individualism, long-term orientation and indulgence indexes relative to China, more (less) successfully facilitate corporate innovativeness, particularly when the level of local government intervention is low (high). Our study contributes to the literature by documenting that greater intervention by the local government can undermine cognitive dynamics, and hence dissipate corporate innovativeness and value creation associated with a culturally diverse board. [ABSTRACT FROM AUTHOR]

Using discretionary accruals to proxy for earnings quality, this study investigates whether and how the first voluntary internal control reporting in 2007 is associated with earnings quality in China. We find that earnings quality is higher in 2007, yet not in 2006, for public companies issuing a first-time voluntary unqualified internal control report, compared with listed firms not issuing an internal control report. Our findings are consistent with a signalling of performance explanation and inconsistent with a signalling of effectiveness explanation. We also find that earnings quality is lower for public companies issuing an internal control report mentioning a weakness, compared with public companies not issuing an internal control report. Overall, our study suggests that public companies conduct diligent self-assessments when issuing a first-time voluntary unqualified internal control report. Consequently, there is an improvement in earnings quality. [ABSTRACT FROM AUTHOR]