In this study, we examine whether internal control over financial reporting affects firm operational efficiency. We find that operational efficiency, derived from frontier analysis, is significantly lower among firms with material weaknesses in internal control relative to firms without such...

In this paper, we examine the effect of managers' pay duration on firms' voluntary disclosures. Pay duration refers to the average period that it takes for managers' annual compensation to vest. We hypothesize and find that pay duration can incentivize managers to provide more bad news earnings...