ABSTRACT
This study investigates the relationship between a firm with a sufficient number of personnel in charge of its internal controls and post-earnings announcement drift (PEAD). Having enough internal control personnel is expected to increase the transparency and reliability of accounting information, reduce the delay in investors’ decision-making, and ultimately reduce PEAD. The empirical results show that PEAD is reduced when the size of a firm’s internal control workforce is adequate. This study contributes to the literature by finding that having a sufficient number of internal personnel responsible for a company’s accounting information is an additional factor that influences PEAD.
Disclosure statement
No potential conflict of interest was reported by the author.
Data availability statement
The data regarding personnel in charge of internal controls and earnings disclosure dates were manually collected from the electronic disclosure system of the Financial Supervisory Service. In addition, financial and stock price data were obtained from KIS-VALUE and Fn-Guide.