Market Reaction to the Impact of Internal Control on Earnings Persistence: Empirical Evidence from Listed Companies During the Period of 2007 to 2010

摘要

In this paper, based on data from non-financial A-share companies listed in Shenzhen and Shanghai Stock Exchange in the year 2007 to 2010, we conduct a research into whether the market can identify the impact of internal control on earnings persistence. We explore positive market reaction to that impact, which means it is """"good news"""" to investors and contains incremental information content.