Research Article
BibTex RIS Cite

The Moderator Effect of The Internal Control System on The Financial Success of Corporate Governance

Year 2022, Volume: 8 Issue: 2, 311 - 335, 25.10.2022
https://doi.org/10.20979/ueyd.1170268

Abstract

In the literature, there are studies investigating whether the internal control system and corporate governance principles have an effect on financial performance. However, there is no study investigating the moderator effect of the internal control system on the financial success of corporate governance. For this purpose, it was examined in this study whether there was a moderator effect of the internal control system on the financial success of corporate governance. The study was conducted on companies in the Borsa Istanbul (BIST) corporate governance index (XKURY). The effectiveness of the internal control system was determined by the survey method, and then corporate governance effectiveness ranking was obtained with corporate governance rating scores. The moderator effect was investigated by regression analysis using the data obtained. As a result of the analysis, it has been determined that the internal control system has a moderator effect on the financial success of corporate governance. On the other hand, it is concluded that although corporate governance is thought to have a moderator effect on the financial performance of the internal control system, it does not. This result indicates that the efficiency of the internal control system should be increased for the financial success of corporate governance in enterprises. The reasons for this theoretically unexpected result were investigated in the study.

References

  • Agyei-Mensah, B. K. (2016). Internal control information disclosure and corporate governance: evidence from an emerging market. Corporate Governance: The international journal of business in society. 16(1), 79-95. https://doi.org/10.1108/CG-10-2015-0136
  • Andreou, P. C., Louca, C., & Panayides, P. M. (2014). Corporate governance, financial management decisions and firm performance: Evidence from the maritime industry. Transportation Research Part E: Logistics and Transportation Review, 63, 59-78. https://doi.org/10.1016/j.tre.2014.01.005
  • Ashbaugh-Skaife, H., Collins, D. W., & Kinney Jr, W. R. (2007). The discovery and reporting of internal control deficiencies prior to SOX-mandated audits. Journal of accounting and economics, 44(1-2), 166-192. https://doi.org/10.1016/j.jacceco.2006.10.001
  • Ahmed, S. O., & Nganga, P. (2019). Internal Control Practices and Financial Performance of County Governments in the Coastal Region of Kenya. International Journal of Current Aspects, 3(V), 28-41. https://doi.org/10.35942/ijcab.v3iV.59
  • Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. (2020). The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51, 101083. https://doi.org/10.1016/j.ribaf.2019.101083
  • Alkan, G., & Doğan, O. (2020) Effects of internal control systems on financial performance: A research on manufacturing companies in the BIST. Journal of Kahramanmaraş Sütçü İmam University Faculty of Economics and Administrative Sciences, 10 (2), 91-102. https://doi.org/10.47147/ksuiibf.776763
  • Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The measurements of firm performance's dimensions. Asian Journal of Finance & Accounting, 6(1), 24. http://dx.doi.org/10.5296/ajfa.v6i1.4761
  • Al-Zwyalif, I. M. (2015). The role of internal control in enhancing corporate governance: evidence from jordan. International Journal of Business and Management, 10(7), 57. http://dx.doi.org/10.5539/ijbm.v10n7p57
  • Black, B. S., Love, I., & Rachinsky, A. (2006). Corporate governance indices and firms' market values: Time series evidence from Russia. Emerging Markets Review, 7(4), 361-379. https://doi.org/10.1016/j.ememar.2006.09.004
  • Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173. https://doi.org/10.1037//0022-3514.51.6.1173
  • Cadbury Report, (1992). Report of the Committee on the Financial Aspects of Corporate Governance. Professional Publishing, London. Capital Markets Board (CMB) (2011). Communiqué on determination and implementation of corporate governance principles, (Series: IV, No: 56) https://www.spk.gov.tr/Sayfa/Dosya/66
  • Chong, W. L., Ting, K. H., & Cheng, F. F. (2018). The impact of corporate governance moderating effects on the performance of reits in Asia. Journal of Real Estate Literature, 26(1), 151-174. https://doi.org/10.1080/10835547.2018.12090475
  • Coates, I. V., & John, C. (2007). The goals and promise of the Sarbanes-Oxley Act. Journal of economic perspectives, 21(1), 91-116. https://doi.org/10.1257/jep.21.1.91
  • Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2013). Internal control-integrated framework. https://dair.nps.edu/handle/123456789/2964
  • Çiğdem Canbay, F., (2018), Effects of Internal Control System on Corporate Governance: Application in Companies Included in BIST Corporate Governance Index. [Unpublished doctoral dissertation]. İnönü University.
  • Dhaliwal, D., Hogan, C., Trezevant, R., & Wilkins, M. (2011). Internal control disclosures, monitoring, and the cost of debt. The Accounting Review, 86(4), 1131-1156. https://doi.org/10.2308/accr-10043
  • Ebel, R. L., & Frisbie, D. A. (1972). Essentials of educational measurement (p. 232). Englewood Cliffs, NJ: Prentice-Hall.
  • Nabi, G. Y. A. E. (2016). Corporate Governance as an Internal Control System and Its Impact on Financial Performance Empirical Study: Companies Listed at Palestine Exchange. [Unpublished master’s thesis]. The Islamic Gaza Universty.
  • Ejoh, N., & Ejom, P. (2014). The impact of internal control activities on financial performance of tertiary institutions in Nigeria.Journal of Economics and Sustainable Development, 5(16), 133-143.
  • Feng, M., Li, C., McVay, S. E., & Skaife, H. (2015). Does ineffective internal control over financial reporting affect a firm's operations? Evidence from firms' inventory management. The Accounting Review, 90(2), 529-557. https://doi.org/10.2308/accr-50909
  • George, D., & Mallery, P. (2019). IBM SPSS statistics 26 step by step: A simple guide and reference. Routledge.
  • Ge, W., Koester, A., & McVay, S. (2017). Benefits and costs of Sarbanes-Oxley Section 404 (b) exemption: Evidence from small firms’ internal control disclosures. Journal of Accounting and Economics, 63(2-3), 358-384. https://doi.org/10.1016/j.jacceco.2017.01.001
  • Gillan, S. L. (2006). Recent developments in corporate governance: An overview. Journal of Corporate Finance, 12(3), 381-402. https://doi.org/10.1016/j.jcorpfin.2005.11.002
  • Goh, B. W., & Li, D. (2011). Internal controls and conditional conservatism. The Accounting Review, 86(3), 975-1005. https://doi.org/10.2308/accr.00000041
  • Gupta, P., & Sharma, A. M. (2014). A study of the impact of corporate governance practices on firm performance in Indian and South Korean companies. Procedia-Social and Behavioral Sciences, 133, 4-11. https://doi.org/10.1016/j.sbspro.2014.04.163
  • Heenetigala, K., & Armstrong, A. F. (2011, December). The impact of corporate governance on firm performance in an unstable economic and political environment: Evidence from Sri Lanka. In 2012 Financial markets & corporate governance conference. http://dx.doi.org/10.2139/ssrn.1971927
  • Hermanson, D. R., Smith, J. L., & Stephens, N. M. (2012). How effective are organizations' internal controls? Insights into specific internal control elements. Current Issues in Auditing, 6(1), A31-A50. https://doi.org/10.2308/ciia-50146
  • Hightower, R. (2008). Internal controls policies and procedures. John Wiley & Sons.
  • Ibrahim, S., Diibuzie, G., & Abubakari, M. (2017). The impact of internal control systems on financial performance: The case of health institutions in upper west region of Ghana. International Journal of Academic Research in Business and Social Sciences, 7(4), 684-696. http://dx.doi.org/10.6007/IJARBSS/v7-i4/2840
  • Iqbal, S., Nawaz, A., & Ehsan, S. (2019). Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60, 1-13. https://doi.org/10.1016/j.asieco.2018.10.002
  • Koutoupis, A. G., & Pappa, E. (2018). Corporate governance and internal controls: a case study from Greece. Journal of governance & regulation, (7, Iss. 2), 91-99. http://doi.org/10.22495/jgr_v7_i2_p8
  • Kabuye, F., Kato, J., Akugizibwe, I., & Bugambiro, N. (2019). Internal control systems, working capital management and financial performance of supermarkets. Cogent Business & Management, 6(1), 1573524. https://doi.org/10.1080/23311975.2019.1573524
  • Kanca Sevda, (2020), The Effect of Internal Control System and Corporate Governance Principles on Financial Performance. [Unpublished doctoral dissertation]. Eurasia University.
  • Kara, Murat, (2018), Evaluating the Interaction Between Quality Management Systems and Internal Control System Applications and A Research. [Unpublished doctoral dissertation]. İnönü University
  • Mock, T. J., Sun, L., Srivastava, R. P., & Vasarhelyi, M. (2009). An evidential reasoning approach to Sarbanes-Oxley mandated internal control risk assessment. International Journal of Accounting Information Systems, 10(2), 65-78. https://doi.org/10.1016/j.accinf.2008.10.003
  • Moeller, R. R. (2011). COSO enterprise risk management: establishing effective governance, risk, and compliance processes (Vol. 560). John Wiley & Sons.
  • Mohamed, W. S., & Elewa, M. (2016). The impact of corporate governance on stock price and trade volume. International Journal of Accounting and Financial Reporting, 6(2), 27-44. http://dx.doi.org/10.5296/ijafr.v6i2.9757
  • Ngatno, Apriatni, E. P., & Youlianto, A. (2021). Moderating effects of corporate governance mechanism on the relation between capital structure and firm performance. Cogent Business & Management, 8(1), 1866822. https://doi.org/10.1080/23311975.2020.1866822
  • Nuryana, Y., & Surjandari, D. A. (2019). The effect of good corporate governance mechanism, and earning management on company financial performance. Global Journal of Management and Business Research. 19(1),1-24
  • OECD, (1998). OECD Principles of Corporate Governance, Improving Competitiveness and Access to Capital in Global Markets: A Report to the OECD by the Business Sector Advisory Group on Corporate Governance, OECD Publishing. https://www.oecd.org/officialdocuments/ publicdisplaydocumentpdf/?cote=C/MIN(99)6&docLanguage=En
  • OECD, (2004),”Principles of Corporate Governance”, http://www.oecd.org/ cor porate/ca/corporategovernanceprinciples/31557724.pdf
  • Olumbe, C. O. (2012). The relationship between internal controls and corporate Governance in commercial banks in Kenya. [Unpublished doctoral dissertation]. Nairobi Universty
  • Özçetin, N., (2017), Risk Management and Internal Control in Milk Production: A Study. [Unpublished doctoral dissertation]. Erciyes University.
  • Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The impact of supply chain integration and internal control on financial performance in the Jordanian banking sector. Sustainability, 11(5), 1248. https://doi.org/10.3390/su11051248
  • Perry, W. E. (2005). A quantitative assessment of internal controls: internal auditors can fortify their assurance efforts by implementing a systematic, framework-based approach to control reviews. Internal Auditor, 62(2), 51-56.
  • Pillai, R., & Al-Malkawi, H. A. N. (2018). On the relationship between corporate governance and firm performance: Evidence from GCC countries. Research in International Business and Finance, 44, 394-410. https://doi.org/10.1016/j.ribaf.2017.07.110
  • Renneboog, L. (2000). Ownership, managerial control and the governance of companies listed on the Brussels stock exchange. Journal of banking & finance, 24(12), 1959-1995. https://doi.org/10.1016/S0378-4266(99)00128-4
  • Polat, Erhan, (2018), Corporate Risk Management and Internal Control System within the Framework of Corporate Governance Principles in Family Companies: TR3 Region Application, [Unpublished doctoral dissertation]. İnönü University.
  • Rubino, M., Vitolla, F., & Garzoni, A. (2017). The impact of an IT governance framework on the internal control environment. Records Management Journal. https://doi.org/10.1108/RMJ-03-2016-0007
  • Rice, S. C., & Weber, D. P. (2012). How effective is internal control reporting under SOX 404? Determinants of the (non‐) disclosure of existing material weaknesses. Journal of Accounting Research, 50(3), 811-843. https://doi.org/10.1111/j.1475-679X.2011.00434.x
  • Sari, M., & Lubis, A. D. (2018). The influence of organization's culture and internal control to corporate governance and is impact on bumn (state-owned enterprises) corporate performance in indonesia. J. Advanced Res. L. & Econ., 9, 681. https://doi.org/10.14505//jarle.v9%202(32).30
  • Shahwan, T. M. (2015). The effects of corporate governance on financial performance and financial distress: evidence from Egypt. Corporate Governance. 15(5), 641-662 https://doi.org/10.1108/CG-11-2014-0140
  • Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  • Suyono, E., & Hariyanto, E. (2012). Relationship between internal control, internal audit, and organization commitment with good governance: Indonesian case. China-USA Business Review, 11(9). http://dx.doi.org/10.17265/1537-1514/2012.09.006
  • Şenol, Z., & Ulutaş, A. (2018). Muhasebe temelli performans ölçümleri ile piyasa temelli performans ölçümlerinin CRITIC ve ARAS yöntemleriyle değerlendirilmesi. Finans Politik & Ekonomik Yorumlar, 55(641), 83-102.
  • World Bank. (2000),”Corporate Governance” A Frame Work for Implementation Overwiev”,1-44 http://documents.worldbank.org/curated/en/831651468781818619/pdf/30446.pdf
  • Uzay, Ş. (1999), Businesses in the review of the Independent External Auditing Internal Control Systems and Decision Processes in Place A Research on Audit Firms in Turkey, Capital Markets Board Publication, No: 132, 1st Edition, Ankara.
  • Unlu, U., Yalcin, N., & Yagli, İ. (2017). Kurumsal yönetim ve firma performansi: topsis yöntemi ile bist 30 firmalari üzerine bir uygulama. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 19(1), 63-81. https://doi.org/10.16953/deusbed.09673
  • Valenti, M. A., Luce, R., & Mayfield, C. (2011). The effects of firm performance on corporate governance. Management Research Review. 34(3), 266–283. https://doi.org/10.1108/01409171111116295
  • Wessels, R. E., Wansbeek, T., & Dam, L. (2016). What is the relation (if any) between a firm's corporate governance arrangements and its financial performance?. Multinational Finance Journal, 20(4), 323-354. https://doi.org/10.17578/20-4-2
  • Yang, L., Qin, H., Gan, Q., & Su, J. (2020). Internal control quality, enterprise environmental protection investment and finance performance: An empirical study of China’s a-share heavy pollution industry. International Journal of Environmental Research and Public Health, 17(17), 6082. https://doi.org/10.3390/ijerph17176082
  • Yıldırım, A., & Şimşek, H. (2005). Qualitative Research Methods In The Social Sciences. Seckin Publishing.

Kurumsal Yönetimin Finansal Başarısında İç Kontrol Sisteminin Moderatör Etkisi

Year 2022, Volume: 8 Issue: 2, 311 - 335, 25.10.2022
https://doi.org/10.20979/ueyd.1170268

Abstract

Literatürde iç kontrol sistemi ile kurumsal yönetim ilkelerinin finansal performans üzerine etkisinin bulunup bulunmadığına yönelik çalışmalar olduğu görülmektedir. Ancak, her bir faktörün finansal başarısında diğer faktörün moderatör etkisinin olup olmadığına veya hangi faktörün daha güçlü bir moderatör etkiye sahip olduğuna dair bir çalışma mevcut değildir. Bu amaçla çalışmada, önce iç kontrol sisteminin daha sonra kurumsal yönetimin finansal performans üzerine etkisinde hem kurumsal yönetimin hem de iç kontrol sisteminin moderatör etkisinin olup olmadığı incelenmiştir. Araştırma, BİST (XKURY) kurumsal yönetim endeksindeki şirketler üzerinde gerçekleştirilmiştir. Anket yöntemi ile iç kontrol sistemi etkinliği tespit edilmiş daha sonra kurumsal yönetim derecelendirme puanları ile kurumsal yönetim etkinlik sıralaması oluşturulmuştur. Elde edilen veriler kullanılarak, moderatör etki, regresyon analizi ile tespit edilmeye çalışılmıştır. Sonuç olarak şirketlerde iç kontrol sisteminin finansal performansı üzerinde, kurumsal yönetimin moderatör etkisinin olmadığı, kurumsal yönetimin finansal başarısında iç kontrol sisteminin moderatör etkisinin güçlü olduğu sonucuna ulaşılmıştır. Bu sonuç işletmelerde kurumsal yönetimin finansal başarısı için iç kontrol sisteminin etkinliğini artırılmaları gerektiğini ifade etmektedir. Çalışmada teorik olarak beklenmeyen bu sonuçların nedenleri araştırılmıştır.

References

  • Agyei-Mensah, B. K. (2016). Internal control information disclosure and corporate governance: evidence from an emerging market. Corporate Governance: The international journal of business in society. 16(1), 79-95. https://doi.org/10.1108/CG-10-2015-0136
  • Andreou, P. C., Louca, C., & Panayides, P. M. (2014). Corporate governance, financial management decisions and firm performance: Evidence from the maritime industry. Transportation Research Part E: Logistics and Transportation Review, 63, 59-78. https://doi.org/10.1016/j.tre.2014.01.005
  • Ashbaugh-Skaife, H., Collins, D. W., & Kinney Jr, W. R. (2007). The discovery and reporting of internal control deficiencies prior to SOX-mandated audits. Journal of accounting and economics, 44(1-2), 166-192. https://doi.org/10.1016/j.jacceco.2006.10.001
  • Ahmed, S. O., & Nganga, P. (2019). Internal Control Practices and Financial Performance of County Governments in the Coastal Region of Kenya. International Journal of Current Aspects, 3(V), 28-41. https://doi.org/10.35942/ijcab.v3iV.59
  • Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. (2020). The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51, 101083. https://doi.org/10.1016/j.ribaf.2019.101083
  • Alkan, G., & Doğan, O. (2020) Effects of internal control systems on financial performance: A research on manufacturing companies in the BIST. Journal of Kahramanmaraş Sütçü İmam University Faculty of Economics and Administrative Sciences, 10 (2), 91-102. https://doi.org/10.47147/ksuiibf.776763
  • Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The measurements of firm performance's dimensions. Asian Journal of Finance & Accounting, 6(1), 24. http://dx.doi.org/10.5296/ajfa.v6i1.4761
  • Al-Zwyalif, I. M. (2015). The role of internal control in enhancing corporate governance: evidence from jordan. International Journal of Business and Management, 10(7), 57. http://dx.doi.org/10.5539/ijbm.v10n7p57
  • Black, B. S., Love, I., & Rachinsky, A. (2006). Corporate governance indices and firms' market values: Time series evidence from Russia. Emerging Markets Review, 7(4), 361-379. https://doi.org/10.1016/j.ememar.2006.09.004
  • Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173. https://doi.org/10.1037//0022-3514.51.6.1173
  • Cadbury Report, (1992). Report of the Committee on the Financial Aspects of Corporate Governance. Professional Publishing, London. Capital Markets Board (CMB) (2011). Communiqué on determination and implementation of corporate governance principles, (Series: IV, No: 56) https://www.spk.gov.tr/Sayfa/Dosya/66
  • Chong, W. L., Ting, K. H., & Cheng, F. F. (2018). The impact of corporate governance moderating effects on the performance of reits in Asia. Journal of Real Estate Literature, 26(1), 151-174. https://doi.org/10.1080/10835547.2018.12090475
  • Coates, I. V., & John, C. (2007). The goals and promise of the Sarbanes-Oxley Act. Journal of economic perspectives, 21(1), 91-116. https://doi.org/10.1257/jep.21.1.91
  • Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2013). Internal control-integrated framework. https://dair.nps.edu/handle/123456789/2964
  • Çiğdem Canbay, F., (2018), Effects of Internal Control System on Corporate Governance: Application in Companies Included in BIST Corporate Governance Index. [Unpublished doctoral dissertation]. İnönü University.
  • Dhaliwal, D., Hogan, C., Trezevant, R., & Wilkins, M. (2011). Internal control disclosures, monitoring, and the cost of debt. The Accounting Review, 86(4), 1131-1156. https://doi.org/10.2308/accr-10043
  • Ebel, R. L., & Frisbie, D. A. (1972). Essentials of educational measurement (p. 232). Englewood Cliffs, NJ: Prentice-Hall.
  • Nabi, G. Y. A. E. (2016). Corporate Governance as an Internal Control System and Its Impact on Financial Performance Empirical Study: Companies Listed at Palestine Exchange. [Unpublished master’s thesis]. The Islamic Gaza Universty.
  • Ejoh, N., & Ejom, P. (2014). The impact of internal control activities on financial performance of tertiary institutions in Nigeria.Journal of Economics and Sustainable Development, 5(16), 133-143.
  • Feng, M., Li, C., McVay, S. E., & Skaife, H. (2015). Does ineffective internal control over financial reporting affect a firm's operations? Evidence from firms' inventory management. The Accounting Review, 90(2), 529-557. https://doi.org/10.2308/accr-50909
  • George, D., & Mallery, P. (2019). IBM SPSS statistics 26 step by step: A simple guide and reference. Routledge.
  • Ge, W., Koester, A., & McVay, S. (2017). Benefits and costs of Sarbanes-Oxley Section 404 (b) exemption: Evidence from small firms’ internal control disclosures. Journal of Accounting and Economics, 63(2-3), 358-384. https://doi.org/10.1016/j.jacceco.2017.01.001
  • Gillan, S. L. (2006). Recent developments in corporate governance: An overview. Journal of Corporate Finance, 12(3), 381-402. https://doi.org/10.1016/j.jcorpfin.2005.11.002
  • Goh, B. W., & Li, D. (2011). Internal controls and conditional conservatism. The Accounting Review, 86(3), 975-1005. https://doi.org/10.2308/accr.00000041
  • Gupta, P., & Sharma, A. M. (2014). A study of the impact of corporate governance practices on firm performance in Indian and South Korean companies. Procedia-Social and Behavioral Sciences, 133, 4-11. https://doi.org/10.1016/j.sbspro.2014.04.163
  • Heenetigala, K., & Armstrong, A. F. (2011, December). The impact of corporate governance on firm performance in an unstable economic and political environment: Evidence from Sri Lanka. In 2012 Financial markets & corporate governance conference. http://dx.doi.org/10.2139/ssrn.1971927
  • Hermanson, D. R., Smith, J. L., & Stephens, N. M. (2012). How effective are organizations' internal controls? Insights into specific internal control elements. Current Issues in Auditing, 6(1), A31-A50. https://doi.org/10.2308/ciia-50146
  • Hightower, R. (2008). Internal controls policies and procedures. John Wiley & Sons.
  • Ibrahim, S., Diibuzie, G., & Abubakari, M. (2017). The impact of internal control systems on financial performance: The case of health institutions in upper west region of Ghana. International Journal of Academic Research in Business and Social Sciences, 7(4), 684-696. http://dx.doi.org/10.6007/IJARBSS/v7-i4/2840
  • Iqbal, S., Nawaz, A., & Ehsan, S. (2019). Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics, 60, 1-13. https://doi.org/10.1016/j.asieco.2018.10.002
  • Koutoupis, A. G., & Pappa, E. (2018). Corporate governance and internal controls: a case study from Greece. Journal of governance & regulation, (7, Iss. 2), 91-99. http://doi.org/10.22495/jgr_v7_i2_p8
  • Kabuye, F., Kato, J., Akugizibwe, I., & Bugambiro, N. (2019). Internal control systems, working capital management and financial performance of supermarkets. Cogent Business & Management, 6(1), 1573524. https://doi.org/10.1080/23311975.2019.1573524
  • Kanca Sevda, (2020), The Effect of Internal Control System and Corporate Governance Principles on Financial Performance. [Unpublished doctoral dissertation]. Eurasia University.
  • Kara, Murat, (2018), Evaluating the Interaction Between Quality Management Systems and Internal Control System Applications and A Research. [Unpublished doctoral dissertation]. İnönü University
  • Mock, T. J., Sun, L., Srivastava, R. P., & Vasarhelyi, M. (2009). An evidential reasoning approach to Sarbanes-Oxley mandated internal control risk assessment. International Journal of Accounting Information Systems, 10(2), 65-78. https://doi.org/10.1016/j.accinf.2008.10.003
  • Moeller, R. R. (2011). COSO enterprise risk management: establishing effective governance, risk, and compliance processes (Vol. 560). John Wiley & Sons.
  • Mohamed, W. S., & Elewa, M. (2016). The impact of corporate governance on stock price and trade volume. International Journal of Accounting and Financial Reporting, 6(2), 27-44. http://dx.doi.org/10.5296/ijafr.v6i2.9757
  • Ngatno, Apriatni, E. P., & Youlianto, A. (2021). Moderating effects of corporate governance mechanism on the relation between capital structure and firm performance. Cogent Business & Management, 8(1), 1866822. https://doi.org/10.1080/23311975.2020.1866822
  • Nuryana, Y., & Surjandari, D. A. (2019). The effect of good corporate governance mechanism, and earning management on company financial performance. Global Journal of Management and Business Research. 19(1),1-24
  • OECD, (1998). OECD Principles of Corporate Governance, Improving Competitiveness and Access to Capital in Global Markets: A Report to the OECD by the Business Sector Advisory Group on Corporate Governance, OECD Publishing. https://www.oecd.org/officialdocuments/ publicdisplaydocumentpdf/?cote=C/MIN(99)6&docLanguage=En
  • OECD, (2004),”Principles of Corporate Governance”, http://www.oecd.org/ cor porate/ca/corporategovernanceprinciples/31557724.pdf
  • Olumbe, C. O. (2012). The relationship between internal controls and corporate Governance in commercial banks in Kenya. [Unpublished doctoral dissertation]. Nairobi Universty
  • Özçetin, N., (2017), Risk Management and Internal Control in Milk Production: A Study. [Unpublished doctoral dissertation]. Erciyes University.
  • Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The impact of supply chain integration and internal control on financial performance in the Jordanian banking sector. Sustainability, 11(5), 1248. https://doi.org/10.3390/su11051248
  • Perry, W. E. (2005). A quantitative assessment of internal controls: internal auditors can fortify their assurance efforts by implementing a systematic, framework-based approach to control reviews. Internal Auditor, 62(2), 51-56.
  • Pillai, R., & Al-Malkawi, H. A. N. (2018). On the relationship between corporate governance and firm performance: Evidence from GCC countries. Research in International Business and Finance, 44, 394-410. https://doi.org/10.1016/j.ribaf.2017.07.110
  • Renneboog, L. (2000). Ownership, managerial control and the governance of companies listed on the Brussels stock exchange. Journal of banking & finance, 24(12), 1959-1995. https://doi.org/10.1016/S0378-4266(99)00128-4
  • Polat, Erhan, (2018), Corporate Risk Management and Internal Control System within the Framework of Corporate Governance Principles in Family Companies: TR3 Region Application, [Unpublished doctoral dissertation]. İnönü University.
  • Rubino, M., Vitolla, F., & Garzoni, A. (2017). The impact of an IT governance framework on the internal control environment. Records Management Journal. https://doi.org/10.1108/RMJ-03-2016-0007
  • Rice, S. C., & Weber, D. P. (2012). How effective is internal control reporting under SOX 404? Determinants of the (non‐) disclosure of existing material weaknesses. Journal of Accounting Research, 50(3), 811-843. https://doi.org/10.1111/j.1475-679X.2011.00434.x
  • Sari, M., & Lubis, A. D. (2018). The influence of organization's culture and internal control to corporate governance and is impact on bumn (state-owned enterprises) corporate performance in indonesia. J. Advanced Res. L. & Econ., 9, 681. https://doi.org/10.14505//jarle.v9%202(32).30
  • Shahwan, T. M. (2015). The effects of corporate governance on financial performance and financial distress: evidence from Egypt. Corporate Governance. 15(5), 641-662 https://doi.org/10.1108/CG-11-2014-0140
  • Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  • Suyono, E., & Hariyanto, E. (2012). Relationship between internal control, internal audit, and organization commitment with good governance: Indonesian case. China-USA Business Review, 11(9). http://dx.doi.org/10.17265/1537-1514/2012.09.006
  • Şenol, Z., & Ulutaş, A. (2018). Muhasebe temelli performans ölçümleri ile piyasa temelli performans ölçümlerinin CRITIC ve ARAS yöntemleriyle değerlendirilmesi. Finans Politik & Ekonomik Yorumlar, 55(641), 83-102.
  • World Bank. (2000),”Corporate Governance” A Frame Work for Implementation Overwiev”,1-44 http://documents.worldbank.org/curated/en/831651468781818619/pdf/30446.pdf
  • Uzay, Ş. (1999), Businesses in the review of the Independent External Auditing Internal Control Systems and Decision Processes in Place A Research on Audit Firms in Turkey, Capital Markets Board Publication, No: 132, 1st Edition, Ankara.
  • Unlu, U., Yalcin, N., & Yagli, İ. (2017). Kurumsal yönetim ve firma performansi: topsis yöntemi ile bist 30 firmalari üzerine bir uygulama. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 19(1), 63-81. https://doi.org/10.16953/deusbed.09673
  • Valenti, M. A., Luce, R., & Mayfield, C. (2011). The effects of firm performance on corporate governance. Management Research Review. 34(3), 266–283. https://doi.org/10.1108/01409171111116295
  • Wessels, R. E., Wansbeek, T., & Dam, L. (2016). What is the relation (if any) between a firm's corporate governance arrangements and its financial performance?. Multinational Finance Journal, 20(4), 323-354. https://doi.org/10.17578/20-4-2
  • Yang, L., Qin, H., Gan, Q., & Su, J. (2020). Internal control quality, enterprise environmental protection investment and finance performance: An empirical study of China’s a-share heavy pollution industry. International Journal of Environmental Research and Public Health, 17(17), 6082. https://doi.org/10.3390/ijerph17176082
  • Yıldırım, A., & Şimşek, H. (2005). Qualitative Research Methods In The Social Sciences. Seckin Publishing.
There are 62 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Research Articles
Authors

Sevda Kanca 0000-0002-3057-5759

Fikret Çankaya 0000-0002-0738-3580

Engin Dinç 0000-0002-4701-6996

Aykut Karakaya 0000-0001-6491-132X

Early Pub Date October 8, 2022
Publication Date October 25, 2022
Submission Date September 2, 2022
Published in Issue Year 2022 Volume: 8 Issue: 2

Cite

APA Kanca, S., Çankaya, F., Dinç, E., Karakaya, A. (2022). The Moderator Effect of The Internal Control System on The Financial Success of Corporate Governance. Uluslararası Ekonomi Ve Yenilik Dergisi, 8(2), 311-335. https://doi.org/10.20979/ueyd.1170268

International Journal of Economics and Innovation

Karadeniz Technical University, Department of Economics, 61080, Trabzon/Türkiye
28816