Beyond Internal Control over Financial Reporting: The Chinese Experience

Synopsis

By examining two different modes of internal control and the fundamentals of risk management, this book analyses the role of internal control in financing, investment, profit distribution, and corporate strategies through China's experience. In doing so, it confirms the effectiveness and superiority of internal control over operation and management. The book compares the various internal control methods used in China and the USA, namely, operation and management-oriented versus financial reporting-oriented approaches. It also discusses the differences in corporate risk attitudes and behaviours under the two approaches. The author then proposes the hyper-correction hypothesis and the trimming hypothesis. Empirical findings regarding corporate cash policy, mergers and acquisitions, tax avoidance, and diversification strategy reveal that internal control in China does not result in undue risk aversion but instead manages enterprise risk within a reasonable capacity. These results support the trimming hypothesis and demonstrate that internal control is a useful risk management tool. The title will appeal to students, academics, and accounting professionals interested in internal control (risk management), accounting, auditing and corporate finance, regulation and governance.

Copyright:

2024

Book Details

Book Quality:

Publisher Quality

Book Size:

166 Pages

ISBN-13:

9781003848608

Related ISBNs:

9781032697673, 9781032697680, 9781032697635

Publisher:

Taylor and Francis

Date of Addition:

02/05/24

Copyrighted By:

Daoguang Yang, The right of Daoguang Yang to be identified as author of this work has been asserted in accordance with sections

Adult content:

No

Language:

English

Has Image Descriptions:

No

Categories:

Nonfiction, Business and Finance, Law, Legal Issues and Ethics

Submitted By:

Bookshare Staff

Usage Restrictions:

This is a copyrighted book.