THE RELATIONSHIP BETWEEN INTERNAL CONTROL AND COMPLIANCE, AND THE MODERATING EFFECT OF MAJOR PUBLIC EVENTS——BASED ON RESEARCH OF A-SHARE LISTED COMPANIES IN THE YANGTZE RIVER DELTA REGION

Abstract

Given the rising incidence of non-compliance and the severity of internal control compliance issues among listed companies in China, this study investigates the factors influencing corporate compliance. The implementation of the Sarbanes-Oxley (SOX) Act in the United States has contributed, to some extent, to improving corporate internal control compliance. This article analyses the relationship between internal control and corporate compliance, utilising notable public events in the Yangtze River Delta region in recent years, and investigates the moderating influence of these large public events on this relationship. The research utilises a sample of A-share listed firms in the Yangtze River Delta from 2015 to 2022. The results demonstrate that internal controls affect corporate compliance, but significant public events can mitigate the relationship between internal controls and corporate compliance.