Internal Control Weaknesses and the Demand for Financial Skills: Evidence from U.S. Job Postings

التفاصيل البيبلوغرافية
العنوان: Internal Control Weaknesses and the Demand for Financial Skills: Evidence from U.S. Job Postings
المؤلفون: Joseph H. Schroeder, Joseph Pacelli, Kenneth J. Merkley, Janet Gao
المصدر: SSRN Electronic Journal.
بيانات النشر: Elsevier BV, 2020.
سنة النشر: 2020
مصطلحات موضوعية: Finance, ComputingMilieux_THECOMPUTINGPROFESSION, business.industry, education, Control (management), Workforce, Business, Human capital, health care economics and organizations
الوصف: Ineffective internal controls over financial reporting often relates to a lack of qualified personnel with sufficient accounting and technical expertise. In this study, we examine whether firms respond to internal control failures by increasing their demand for specific accounting and finance skills. Using unique data containing an extensive collection of job postings, we document significant increases in firms’ demand for employees with financial skills following the disclosure of an internal control weakness. This demand effect is more pronounced among jobs requiring accounting skills or accounting software knowledge, but also extends to non-accounting personnel that interface with accounting functions, suggesting an important role for all firm personnel in remediating internal control failures. We also find that increased financial skill demand is associated with a higher likelihood of internal control remediation, especially for firms with restatements. We also provide additional evidence consistent with increased financial skill demand relating to the disclosure of a material weaknesses rather than a proactive firm response to internal control issues. Overall, our findings shed new light on how firms internally respond to ineffective internal controls by increasing their demand for financial skills in their workforce.
تدمد: 1556-5068
DOI: 10.2139/ssrn.3542331
URL الوصول: https://explore.openaire.eu/search/publication?articleId=doi_________::e6e7fa00d408778a7de2a0c502e4268d
https://doi.org/10.2139/ssrn.3542331
رقم الانضمام: edsair.doi...........e6e7fa00d408778a7de2a0c502e4268d
قاعدة البيانات: OpenAIRE
الوصف
تدمد:15565068
DOI:10.2139/ssrn.3542331