The vast academic research evidenced that corporate transparency has favorable effects on markets and on external stakeholder judgment and decision making (e.g. Lang, Lundholm, 1993). As an important part of corporate governance, voluntary disclosure on internal control system has received a great attention after the introduction of the COSO frameworks and the requirements of the US Sarbanes Oxley Act (SOX). The Italian Corporate Governance Code and the Polish Code of Best Practice ask to increase the disclosure on internal control system in order to give more information on the effectiveness and efficiency of the companies. Using content analysis we define an Internal Control Score Disclosure (ICSD) of the Italian Stock Exchange companies and of Polish Stock Exchange companies for the year 2013 in order to investigate corporate governance infl uence on internal control disclosure. The ICSD will be examined in order to provide empirical evidence for the signifi cant increase in the disclosure level of internal control system and to test if, as Beeks and Brown (2006) stated, companies with better governance disclose more information, while those with a weak governance are lacking of financial disclosure and transparency. Preliminary findings show a clear relationship between ICSD and the dimension of board of directors. In next stages we will involve more years and, if possible, more companies. In the next development of the work we will also look for control on possible relationship between ICDS and companies’ characteristics.

Empirical evidence on internal control disclosure in Italy Stock Exchange and Polish Stock Exchange

Neri L;
2015-01-01

Abstract

The vast academic research evidenced that corporate transparency has favorable effects on markets and on external stakeholder judgment and decision making (e.g. Lang, Lundholm, 1993). As an important part of corporate governance, voluntary disclosure on internal control system has received a great attention after the introduction of the COSO frameworks and the requirements of the US Sarbanes Oxley Act (SOX). The Italian Corporate Governance Code and the Polish Code of Best Practice ask to increase the disclosure on internal control system in order to give more information on the effectiveness and efficiency of the companies. Using content analysis we define an Internal Control Score Disclosure (ICSD) of the Italian Stock Exchange companies and of Polish Stock Exchange companies for the year 2013 in order to investigate corporate governance infl uence on internal control disclosure. The ICSD will be examined in order to provide empirical evidence for the signifi cant increase in the disclosure level of internal control system and to test if, as Beeks and Brown (2006) stated, companies with better governance disclose more information, while those with a weak governance are lacking of financial disclosure and transparency. Preliminary findings show a clear relationship between ICSD and the dimension of board of directors. In next stages we will involve more years and, if possible, more companies. In the next development of the work we will also look for control on possible relationship between ICDS and companies’ characteristics.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11697/135776
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