scholarly journals Business Strategy and R&D Expenditures

2020 ◽  
Vol 11 (4) ◽  
pp. 144
Author(s):  
Han Li
Keyword(s):  
Internal Control ◽  
Business Strategy ◽  
Positive Relationship ◽  
Listed Firms ◽  
Control Quality ◽  
High Level ◽  
Strategy Score

This research testifies that there is a positive relationship between business strategy and R&D expenditures based on the data from the listed firms in China. The paper also finds that the management myopic behaviour would make the firms reduce the R&D spending when the strategy score is in the higher level. Furthermore, the research shows the positive relationship between strategy and R&D expenditures still exits when the firms are SOEs and the firms have medium or high level of internal control quality. The result is robustness even after making the endogeneity tests.

scholarly journals FINANCING CONSTRAINTS, INTERNAL CONTROL QUALITY AND COST STICKINESS

2021 ◽  
Vol 22 (5) ◽  
pp. 1231-1251
Author(s):  
Yufeng Chen ◽  
Yanbai Ma
Keyword(s):  
Internal Control ◽  
Financing Constraints ◽  
Equity Financing ◽  
Promoting Effect ◽  
Moderation Effect ◽  
Listed Firms ◽  
Control Quality ◽  
Internal Financing ◽  
The Impact ◽  
Cost Stickiness

Managers think that retaining resources is more effective than rebuilding resources after exhausting them. However, financing constraints have brought great uncertainty to this resource decision-making implemented by managers. Data of manufacturing listed firms in China from 2009 to 2017 are used here to explore the impact of financing constraints on cost stickiness. This paper finds that internal financing constraints have a significant promoting effect on cost stickiness, while debt financing constraints and equity financing constraints have a significant restraining effect on cost stickiness. The internal control quality has a moderation effect on this relationship. In a firm with low quality of internal control, internal financing constraints can enhance cost stickiness, but the weakening effect of external financing on cost stickiness is not affected by internal control quality.

scholarly journals Internal Control Personnel’s Experience, Internal Control Weaknesses, and ESG Rating

2020 ◽  
Vol 12 (20) ◽  
pp. 8645
Author(s):  
Ja Eun Koo ◽  
Eun Sun Ki
Keyword(s):  
Internal Control ◽  
Corporate Sustainability ◽  
Length Of Service ◽  
Listed Firms ◽  
Control Quality ◽  
Efficiency And Effectiveness ◽  
Internal Control Weaknesses ◽  
Accounting Expertise ◽  
The Relationship ◽  
Positive Effect

Effective internal control is expected to have a positive effect on Environmental, Social, and Governance (ESG) ratings, which are an indicator of corporate sustainability, as it ensures improvements in efficiency and effectiveness in operations, reliable reports, and compliance with applicable laws and regulations. However, no matter how well an internal control system is designed, internal control quality deteriorates if internal control (IC) personnel do not understand the firm’s business or lack accounting experience. This study first explores the relationship between ESG ratings and internal control weaknesses (ICWs). We then examine two types of career experience of IC personnel—length of service and accounting experience—and their effect on ICWs. We conduct logit regression analyses using the data of 1876 non-financial listed firms in Korea. The results show that ICW firms have low ESG ratings. We also find that the accounting experience of IC personnel is more closely related to ICWs than the length of service. This implies that the accounting expertise of IC personnel may have a greater effect on internal control quality than the understanding of a firm’s business. Overall, our findings provide evidence that firms must have IC personnel with sufficient accounting expertise for sustainable management.

scholarly journals Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms

2020 ◽  
Vol 23 (1) ◽  
pp. 102-112
Author(s):  
Ling Zhang ◽  
Wen Chen ◽  
WUN HONG SU
Keyword(s):  
Internal Control ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Certified Public Accountant ◽  
Listed Firms ◽  
Control Quality ◽  
Audit Opinions ◽  
Public Accountant

Sobre la base de los datos de las empresas que cotizan en los mercados bursátiles A de Shangai y Shenzhen entre 2007 y 2015, este estudio examina las relaciones entre la calidad del control interno, la competencia en el mercado de productos y las opiniones de auditoría. Los resultados empíricos revelan que (1) cuanto mejor sea la calidad del control interno de las empresas que cotizan en bolsa, más probable es que un contador público certificado emita una opinión sin modificaciones; (2) la competencia en el mercado de productos se asocia positivamente con las opiniones sin modificaciones; (3) la competencia en el mercado de productos debilita la relación positiva entre la calidad del control interno de las empresas que cotizan en bolsa y la probabilidad de que un contador público certificado emita una opinión sin modificaciones; y (4) el impacto significativo de la competencia en el mercado de productos sobre la relación entre el control interno de la calidad y las opiniones sin modificaciones sólo existe en las industrias no monopolísticas. Based on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal control of listed firms is, the more likely a certified public accountant will be to issue a unmodified opinion; (2) the product-market competition is positively associated with unmodified opinions; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that a unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between internal control quality and unmodified opinions exists only in non-monopoly industries.

Board independence and internal control quality in Egypt: does CEO duality matter?

2019 ◽  
Vol 61 (2) ◽  
pp. 345-358 ◽  
Author(s):  
Hichem Khlif ◽  
Khaled Samaha
Keyword(s):  
Internal Control ◽  
Board Independence ◽  
Ceo Duality ◽  
Content Type ◽  
Listed Firms ◽  
External Auditors ◽  
Control Quality ◽  
Leadership Structure ◽  
Board Leadership Structure ◽  
The Relationship

Purpose This paper aims to examine the relationship between board independence and internal control quality (ICQ) in Egypt and investigate whether CEO duality moderates such an association. Design/methodology/approach A survey among external auditors is used to assess ICQ among Egyptian listed firms over the period of 2007-2010. Findings Findings show that board independence does not have a significant positive effect on ICQ. However, when testing for the moderating effect of CEO duality on such a relationship, the authors document that the association becomes positive and significant under combined board leadership structure, whereas it is negative under separated leadership structure. Originality/value The authors’ results demonstrate that CEO duality plays a governance role in weak legal environment like Egypt by strengthening board independence role in increasing ICQ.

Internal Control Quality and Bank Risk-Taking and Performance

2020 ◽  
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Downside Risk ◽  
Internal Controls ◽  
Bank Risk ◽  
Material Weakness ◽  
Control Quality ◽  
Interest Income ◽  
Upside Risk ◽  
And Performance

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

scholarly journals Supervisor Knowledge Sharing and Employee Knowledge Sharing: The Moderating Roles of Learning Goal Orientation and Affective Organizational Commitment

2021 ◽  
Vol 13 (8) ◽  
pp. 4176
Author(s):  
Seckyoung Loretta Kim
Keyword(s):  
Organizational Commitment ◽  
Knowledge Sharing ◽  
Goal Orientation ◽  
Social Exchange ◽  
Positive Relationship ◽  
Affective Organizational Commitment ◽  
Learning Goal ◽  
Learning Goal Orientation ◽  
High Level ◽  
The Relationship

Recognizing the importance of knowledge sharing, this study adopted social learning and social exchange perspectives to understand when employees may engage in knowledge sharing. Using data collected from 192 employees in various South Korean organizations, the findings demonstrate that there is a positive relationship between supervisor knowledge sharing and employee knowledge sharing. As employees perceive a high level of supervisor knowledge sharing, they are likely to engage in knowledge sharing based on social learning and social exchange theories. Furthermore, the study explores the moderating effects of learning goal orientation and affective organizational commitment in the relationship between supervisor knowledge sharing and employee knowledge sharing. The result supports the hypothesis that the relationship between supervisor knowledge sharing and employee knowledge sharing is strengthened when there is a high level of affective organizational commitment. Employees who obtain valuable knowledge from their supervisors are likely to engage in knowledge sharing when they are emotionally attached to their organization. However, in contrast to the hypothesis, the positive relationship between supervisor knowledge sharing and employee knowledge sharing was stronger at the lower levels of learning goal orientation (LGO) than at the higher levels of LGO.

Career Plateau and Turnover Intention in Chinese Employees: Career Anchor as Moderator

2015 ◽  
Vol 43 (5) ◽  
pp. 757-766 ◽  
Author(s):  
Yueran Wen ◽  
Liu Liu
Keyword(s):  
Turnover Intention ◽  
Positive Relationship ◽  
Management Practices ◽  
Career Anchor ◽  
Career Plateau ◽  
Strong Positive Relationship ◽  
High Level ◽  
The Relationship ◽  
Moderating Role

Based on a survey of 147 Chinese employees, we examined the relationship between perceived career plateau and turnover intention, and the moderating role of career anchor in challenge in this process. We hypothesized that perceived career plateau would be positively related to turnover intention, and that this relationship would be stronger in employees with a higher level of career anchor in challenge than in those with a lower level. The results showed that perceived career plateau had a strong positive relationship with turnover intention, especially in employees with a high level of career anchor in challenge. These findings have implications for research in career development and turnover intention, as well as in management practices.

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