Macau University of Science and Technology
Many listed companies have directors, supervisors, and executives with legal backgrounds. They may be more law-abiding due to their understanding of the law, but they may also manipulate more due to their confidence in dealing with legal issues, leading the company more likely to be involved in litigation. The Logit model is used in this article to group listed companies according to whether they have internal control defects, and it is tested whether companies where executives with legal practice backgrounds are more likely to be involved in litigation disputes. The results of empirical and robustness tests both show that the higher the proportion of management personnel with legal practice experience in a listed company, the more likely it is to be involved in litigation disputes. However, better internal control will weaken this situation. This article enriches the research on the relationship between executive traits and corporate performance, and provides useful enlightenment for listed companies to carefully select company executives, strengthen internal control, and regulate business behavior.