Does venture capital backing improve disclosure controls and procedures?: evidence from management's post-IPO disclosures
Firm managers make ethical decisions regarding the form and quality of disclosure. Disclosure can have long-term implications for performance, earnings manipulation, and even fraud. We investigate the impact of venture capital (VC) backing on the quality and informativeness of disclosure controls an...
| VerfasserInnen: | ; ; ; |
|---|---|
| Medienart: | Elektronisch Aufsatz |
| Sprache: | Englisch |
| Verfügbarkeit prüfen: | HBZ Gateway |
| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Veröffentlicht: |
2023
|
| In: |
Journal of business ethics
Jahr: 2023, Band: 187, Heft: 3, Seiten: 539-563 |
| weitere Schlagwörter: | B
Sarbanes-Oxley Act of 2002
B Disclosure controls and procedures B Corporate Governance B Material weaknesses B Initial public offerings B Aufsatz in Zeitschrift B Management disclosure B Venture Capital |
| Online-Zugang: |
Volltext (kostenfrei) Volltext (kostenfrei) |
| Zusammenfassung: | Firm managers make ethical decisions regarding the form and quality of disclosure. Disclosure can have long-term implications for performance, earnings manipulation, and even fraud. We investigate the impact of venture capital (VC) backing on the quality and informativeness of disclosure controls and procedures for newly public companies. We find that these controls and procedures are stronger, as evidenced by fewer material weaknesses in internal control under Section 302 of the Sarbanes-Oxley Act, when companies are VC-backed. Moreover, these disclosures are informative and are more likely to be followed by subsequent financial statement restatements than are disclosures made by non-VC-backed IPO companies. |
|---|---|
| ISSN: | 1573-0697 |
| Enthält: | Enthalten in: Journal of business ethics
|
| Persistent identifiers: | DOI: 10.1007/s10551-022-05272-1 |
