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Firms Response to Misconduct: Evidence from Internal Control
Sarhan, Shatha Ali
Sarhan, Shatha Ali
Description
A Master of Science thesis in Accounting by Shatha Ali Sarhan entitled, “Firms Response to Misconduct: Evidence from Internal Control”, submitted in December 2024. Thesis advisor is Dr. Yumin Zhang Perry. Soft copy is available (Thesis, Approval Signatures, Completion Certificate, and AUS Archives Consent Form).
Abstract
In our research, we examine how firms respond to instances of misconduct, with a particular focus on the critical role of internal control systems in mitigating the negative consequences of unethical behavior. By exploring various forms of corporate wrongdoing, such as financial misreporting and ethical violations, we highlight the significant impact such misconduct can have on a company's reputation, stakeholder trust, and overall organizational integrity. Using a comprehensive, data-driven methodology, we provide a nuanced analysis of how firms can effectively navigate the challenges posed by misconduct. Our key findings reveal that robust internal controls not only enhance compliance with legal and ethical standards but also play a crucial role in restoring stakeholder confidence following incidents of wrongdoing. Our research offers valuable insights into corporate governance and risk management, providing actionable recommendations for organizations seeking to strengthen their ethical frameworks and resilience against misconduct. The implications of our research extend beyond academia, offering practical guidance for practitioners and policymakers in fostering a culture of accountability and ethical leadership within the corporate landscape.