外文翻译--内部控制失败与公司治理结构的关系后萨班斯法案分析.doc

外文翻译--内部控制失败与公司治理结构的关系后萨班斯法案分析 本科毕业论文设计 外 文 翻 译 外文题目 Internal Control Failures and Corporate Governance StructuresA Post Sarbanes-Oxley Act SOX Analysis 外文出处 Georgia Institute of Technology 外文作者 Beng Wee Goh 原文 Internal Control Failures and Corporate Governance StructuresA Post Sarbanes-Oxley Act SOX Analysis 31 Relation between Internal Control Quality and Corporate Governance Structure com Monitoring of Internal Controls by the Board of Directors The findings that weak internal controls result in lower accruals quality and negative stock market reaction lend support to the regulators emphasis on internal controls to improve financial reporting quality Weak internal controls especially if disclosed and allowed to persist can undermine users perception of the credibility of the firms financial reporting and harm the firm in the long run Despite the importance of internal controls research on what corporate governance mechanisms can ensure effective internal controls is scant Fama and Jensen 1983 contend that boards assume an important role in corporate governance The modern large corporation is characterized by the absence of the classical entrepreneurial decision maker Instead in order to reap the benefits of risk sharing the companys residual claims are diffused among many investors who generally vest their decision rights in individuals with specialized knowledge Agency theory predicts that such delegation of decision to management creates conflicts of interests between managers and residual claimants Agency costs are created because the managers who initiate and implement important decisions are not the major residual claimants and therefore do not bear a major share of the wealth effects of their decisionsWithout effective control procedures such managers are likely to take actions that deviate from the interests of residual claimants For