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  • ISSN 2096-9554
  • CN 31-2074/F
Volume 34 Issue 6
Dec.  2020
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Bao Xiaojing, Li Yachao. 2020. Does Integration Intensify or Suppress Internal Control Deficiencies?A Perspective of Equity Heterogeneity and Debt Heterogeneity. Accounting and Economic Research, 34(6): 32-44.
Citation: Bao Xiaojing, Li Yachao. 2020. Does Integration Intensify or Suppress Internal Control Deficiencies?A Perspective of Equity Heterogeneity and Debt Heterogeneity. Accounting and Economic Research, 34(6): 32-44.

Does Integration Intensify or Suppress Internal Control Deficiencies?A Perspective of Equity Heterogeneity and Debt Heterogeneity

  • Received Date: 2020-06-08
  • Publish Date: 2020-11-25
  • This article uses the data of China’s A-share listed companies from 2010 to 2018 to examine the impact of horizontal and vertical expansion on internal control deficiencies, and explores the influence intensity in different institutional environments. The result shows that with the increase in integration level, vertical integration exacerbates internal control deficiencies, while horizontal integration suppresses internal control deficiencies. Both relationships are stronger in a better institutional environment. With further study on equity heterogeneity and debt heterogeneity, it is found that when the degree of separation of the two rights is lower, vertical integration will aggravate internal control deficiencies more significantly; when equity concentration is lower and debt heterogeneity is stronger, the impact of vertical integration’s aggravation and horizontal integration’s suppression on internal control deficiencies will be strengthened.

     

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