Dissertation/Thesis Abstract

A Causal-Comparative Study on Information Technology (IT) Control Material Weaknesses and the Financial Performance of U.S. Corporations
by Sherwood, Daniel A., Ph.D., Northcentral University, 2019, 162; 27671044
Abstract (Summary)

The Sarbanes-Oxley (SOX) Act of 2002 was created in response to the number of corporate scandals and significantly impacted how businesses report financial statements. Section 404 of the SOX Act of 2002 establishes the requirement for public corporations to disclose an assessment of their internal control material weaknesses. This research addresses the problem that there is a need to understand the differences in the possible effects of various types of IT control weaknesses on the financial performance of publicly traded U.S. corporations. The purpose of this quantitative causal-comparative research study was to identify the differences that may exist in the effects of various types of IT control material weaknesses on the financial performance of publicly traded U.S. businesses. The theoretical framework of this study includes the convergence of IT Governance Theory, Accounting Theory, Audit Theory, and Internal Control Theory. The research questions are developed to inquire about the difference in the level of financial performance using Tobin’s Q and Open Market Value (OMV) between public businesses that experience various types of IT control material weaknesses and public businesses that do not experience IT control material weaknesses. A non-random quota sampling method is used to select a minimum sample size of 46 from the target population using matched-pair t-tests to statistical measure the differences between the mean of Group 1 (µ1) with the mean of Group 2 (µ2). This research is not intended to recreate prior studies reflecting the holistic negative impact of IT controls material weaknesses on the financial performance of public businesses. Instead, this research focused on measuring the extent of the negative impacts that individual types of IT control material weaknesses may have on the financial performance of public businesses. The results of this research have the potential to drastically change how stakeholders perceive and react to IT control material weaknesses that are reported by public businesses.

Indexing (document details)
Advisor: Dereshiwsky, Mary, Ghany, Khaled
Commitee: Sopko, Leila
School: Northcentral University
Department: School of Business and Technology Management
School Location: United States -- California
Source: DAI-A 81/7(E), Dissertation Abstracts International
Source Type: DISSERTATION
Subjects: Accounting, Information Technology, Business administration
Keywords: Enterprise resource planning (ERP), Information technology (IT) control material weakness, Internal control, Open Market Value (OMV), Sarbanes-Oxley (SOX) Act of 2002, Tobin’s Q
Publication Number: 27671044
ISBN: 9781392534243
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