Author(s)

Yong Wang, Xingxing Tan

Corresponding Author

Yong Wang

ABSTRACT

The phenomenon of company bankruptcy or financial fraud caused by internal control defects frequently occurs in companies. The paper analyzes the characteristic of corporate governance on internal control defect, based on the principal-agent theory, rational economic man hypothesis, signaling theory ect. The results show that the characteristics of corporate governance have a positive impact on the repair of internal control defects.

KEYWORDS

Characteristics of corporate governance, Internal control defect repair