Sarah E. McVay

TL;DR: The authors examined the relation between accruals quality and internal controls using 705 firms that disclosed at least one material weakness from August 2002 to November 2005 and found that weaknesses are generally associated with poorly estimated assets that are not realized as cash flows.

TL;DR: In this paper, the authors examine determinants of internal control deficiencies using a sample of 779 firms disclosing material weaknesses from August 2002 to August 2005 and find that material weaknesses in internal control are more likely for firms that are smaller, younger, financially weaker, more complex, growing rapidly, or undergoing restructuring.

TL;DR: The authors proposed a measure of managerial ability, based on managers' efficiency in generating revenues, which is available for a large sample of firms and outperforms existing ability measures and finds that the measure is strongly associated with manager fixed effects, and that stock price reactions to CEO turnover are positive (negative) when assessing the outgoing CEO as low (high) ability.

TL;DR: The authors examined the determinants of weaknesses in internal control for 779 firms disclosing material weaknesses from August 2002 to 2005 and found that these firms tend to be smaller, younger, financially weaker, more complex, growing rapidly, or undergoing restructuring.

TL;DR: A measure of managerial ability, based on managers' efficiency in generating revenues, which is available for a large sample of firms and outperforms existing ability measures is proposed, and it is found that the negative relation between equity financing and future abnormal returns documented in prior research is mitigated by managerial ability.