Human Resource Investment in Internal Control and Operating Efficiency

Generating positive long-term cash flow is vital for a firm’s sustainability. In this paper, we consider the earnings in the forecasting of future cash flow from a human resource investment of an internal control system. Using the firms listed in the Korea Stock Exchange market from 2014 to 2018, we find that the current earnings are the components of cash flow forecasting, and this relationship is genuine in a firm equipped with sufficient internal control personnel and their experiences. These findings indicate that earnings are reliable when forecasting future cash flow for a firm with a well-operated foundation.

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The Effect of Human Resource Investment in the Internal Control on the Corporate Disclosure Quality

Regional Industry Review ◽

10.33932/rir.42.3.14 ◽

2019 ◽

Vol 42 (3) ◽

pp. 309-331

Author(s):

Eun Chul Lee

Keyword(s):

Human Resource ◽

Internal Control ◽

Corporate Disclosure ◽

Disclosure Quality ◽

Resource Investment

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The Effect of Human Resource Investment in Internal Control on the Disclosure of Internal Control Weaknesses

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-50514 ◽

2013 ◽

Vol 32 (4) ◽

pp. 169-199 ◽

Cited By ~ 25

Author(s):

Jong-Hag Choi ◽

Sunhwa Choi ◽

Chris E. Hogan ◽

Joonil Lee

Keyword(s):

Human Resource ◽

Financial Reporting ◽

Internal Control ◽

Internal Controls ◽

Listed Firms ◽

Resource Investment ◽

Reporting Requirement ◽

Internal Control Weaknesses ◽

The Individual

SUMMARY This paper investigates the effect of human resource investment in internal control over financial reporting on the disclosure of internal control weaknesses at both the firm and the individual department level. Using a unique reporting requirement for Korean-listed firms, this study uses the ratio of the number of employees involved with the implementation of internal controls (hereafter, IC personnel) to the total number of employees of the firm as a proxy for a firm's human resource investment in internal control. We find that the proportion of IC personnel and the change of the proportion within the firm and several key departments are negatively associated with the disclosure of internal control weaknesses. We also find that a change in IC personnel is positively associated with the likelihood of remediation of the internal control weaknesses. These findings provide valuable insights into the role of human resource investment in determining the strength of a firm's internal controls over financial reporting.

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The International Food Policy Research Institute (IFPRI) and the Mexican PROGRESA Anti-Poverty and Human Resource Investment Conditional Cash

World Development ◽

10.1016/j.worlddev.2010.06.007 ◽

2010 ◽

Vol 38 (10) ◽

pp. 1473-1485 ◽

Cited By ~ 16

Author(s):

Jere R. Behrman

Keyword(s):

Human Resource ◽

Food Policy ◽

Policy Research ◽

Resource Investment ◽

Research Institute

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The Innovation of Human Resource Investment and Value Relevance in Equity Valuation

Asian Social Science ◽

10.5539/ass.v7n12p22 ◽

2011 ◽

Vol 7 (12) ◽

Author(s):

Gee Jung Kwon

Keyword(s):

Human Resource ◽

Value Relevance ◽

Equity Valuation ◽

Resource Investment

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PENGARUH SISTEM PENGENDALIAN INTERN, TEKNOLOGI INFORMASI, KUALITAS SUMBER DAYA MANUSIA DAN KOMITMEN ORGANISASI TERHADAP KUALITAS LAPORAN KEUANGAN (STUDI PADA SATKER DI LINGKUNGAN KEMENTERIAN AGAMA KABUPATEN ACEH UTARA)

Jurnal Perspektif Ekonomi Darussalam ◽

10.24815/jped.v3i2.8228 ◽

2017 ◽

Vol 3 (2) ◽

pp. 151-167

Author(s):

Liza Mutiana ◽

Yossi Diantimala ◽

Zuraida Zuraida

Keyword(s):

Information Technology ◽

Organizational Commitment ◽

Human Resource ◽

Internal Control ◽

Linear Regression Analysis ◽

Work Unit ◽

Resource Quality ◽

Cross Sectional ◽

Financial Reports ◽

Analysis Technique

This study aims to examine the effect of the internal control systems, information technology, human resource quality and organizational commitment on the quality of financial reports on the work unit in the Ministry of Religious Affairs of North Aceh Regency either simultaneously or partially. The population of this study is all work unit in the Ministry of Religious Affairs of North Aceh Regency as many as 53 work units. The type of investigation conducted is causal study, with the time used in data collection is cross-sectional, and the analysis unit is organizational. Sources of data used are primary data, obtained through the distribution of questionnaires to KPA and Preparer of financial reports as respondents. Data analysis technique in testing the hypothesis of this study using multiple linear regression analysis technique is a statistical technique used to test the influence between two or more variables and to see the effect of partial and simultaneous. The result of the research shows that internal control system, information technology, human resource quality and organizational commitment have effect on financial report quality at satker in Ministry of Religious Affairs of North Aceh Regency either simultaneously or partially.Penelitian ini bertujuan untuk menguji pengaruh sistem pengendalian intern, teknologi informasi, kualitas sumber daya manusia dan komitmen organisasi terhadap kualitas laporan keuangan pada satker di lingkungan Kementerian Agama Kabupaten Aceh Utara baik secara simultan maupun parsial. Populasi penelitian ini adalah seluruh satker di lingkungan Kementerian Agama Kabupaten Aceh Utara sebanyak 53 satker. Adapun jenis investigasi yang dilakukan adalah jenis studi kausalitas (causal study), dengan waktu yang digunakan dalam pengumpulan data adalah cross-sectional, danunit analisis adalah organisasional. Sumber data yang digunakan adalah data primer, yang diperoleh melalui penyebaran kuesioner kepada KPA dan penyusun laporan keuangan selaku responden. Teknik analisis data dalam menguji hipotesis penelitian ini menggunakan teknik analisis regresi linier berganda yang merupakan teknik statistik yang digunakan untuk menguji pengaruh antara dua atau lebih variabel dan untuk melihat pengaruh secara parsial dan simultan. Hasil penelitian menunjukkan bahwa bahwa sistem pengendalian intern, teknologi informasi, kualitas sumber daya manusia dan komitmen organisasi berpengaruh secara bersama-sama terhadap kualitas laporan keuangan pada satker di lingkungan Kementerian Agama Kabupaten Aceh Utara baik secara simultan maupun parsial.

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