{"title":"Internal control risk disclosure, media coverage and stock price crash risk: Evidence from China","authors":"Jiajun Zhu , Xuetong Hu , Jing Gao , Hongping Tan","doi":"10.1016/j.accinf.2024.100710","DOIUrl":null,"url":null,"abstract":"<div><div>This study delves into the COSO framework to explore the impact of risk disclosure of internal control and media coverage on stock price crash risk. Our findings reveal that effective risk disclosure of internal control plays a crucial role in reducing a company’s stock price crash risk. Additionally, positive and negative media coverage exhibit contrasting effects on crash risk. Notably, the efficacy of internal risk governance significantly shapes the “Double-edged Sword” effect of media monitoring and ultimately influences stock prices. Finally, we uncover the mechanisms through which risk disclosure mitigates stock price crash risk. In summary, our research offers novel insights and practical recommendations for enhancing corporate governance practices.</div></div>","PeriodicalId":47170,"journal":{"name":"International Journal of Accounting Information Systems","volume":null,"pages":null},"PeriodicalIF":4.1000,"publicationDate":"2024-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Accounting Information Systems","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1467089524000435","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
This study delves into the COSO framework to explore the impact of risk disclosure of internal control and media coverage on stock price crash risk. Our findings reveal that effective risk disclosure of internal control plays a crucial role in reducing a company’s stock price crash risk. Additionally, positive and negative media coverage exhibit contrasting effects on crash risk. Notably, the efficacy of internal risk governance significantly shapes the “Double-edged Sword” effect of media monitoring and ultimately influences stock prices. Finally, we uncover the mechanisms through which risk disclosure mitigates stock price crash risk. In summary, our research offers novel insights and practical recommendations for enhancing corporate governance practices.
期刊介绍：
The International Journal of Accounting Information Systems will publish thoughtful, well developed articles that examine the rapidly evolving relationship between accounting and information technology. Articles may range from empirical to analytical, from practice-based to the development of new techniques, but must be related to problems facing the integration of accounting and information technology. The journal will address (but will not limit itself to) the following specific issues: control and auditability of information systems; management of information technology; artificial intelligence research in accounting; development issues in accounting and information systems; human factors issues related to information technology; development of theories related to information technology; methodological issues in information technology research; information systems validation; human–computer interaction research in accounting information systems. The journal welcomes and encourages articles from both practitioners and academicians.
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