Executive turnover, internal control and accounting information comparability

Abstract This paper aims to explore the causality between executive turnover and accounting information comparability (AIC) within the context of Chinese‐listed companies. The evidence with robustness tests strongly supports that the executive turnover hurts accounting comparability of corporations. These effects are more salient in the subsamples of non‐state‐owned and non‐high‐tech firms relative to state‐owned and high‐tech ones. The negative effects of executive turnover on AIC are restrained given less internal control weakness. The findings highlight the role of internal controls in ensuring AIC, and offer insights to inform the formulation of related management policies following a new executive appointment.