This study investigates the relationship between a firm with a sufficient number of personnel in charge of its internal controls and post-earnings announcement drift (PEAD). Having enough internal ...control personnel is expected to increase the transparency and reliability of accounting information, reduce the delay in investors' decision-making, and ultimately reduce PEAD. The empirical results show that PEAD is reduced when the size of a firm's internal control workforce is adequate. This study contributes to the literature by finding that having a sufficient number of internal personnel responsible for a company's accounting information is an additional factor that influences PEAD.
This study aims to determine the influence of the role of the internal supervision unit and the application of internal control towards the achievement of good university governance. Respondents in ...this study were 85 auditors who worked in the Internal Control Unit at State Universities in the Jakarta, Bogor, Depok, Tangerang, and Serang areas.This study uses primary data and questionnaires to obtain information from respondents using the purposive sampling method. SmartPLS version 3 was used in this study to analyze research consisting of descriptive statistics and hypothesis testing.The results. The results of this study indicate that the role of the internal control unit and the implementation of internal controls have a positive and significant effect on achieving good university governance.
The purpose of this study is to investigate the relationship between pay disparity and a company’s investment inefficiency, and to explore the moderating influence of investment in internal control ...personnel on this relationship. The global concern over pay disparity has intensified as executive compensation soars to unparalleled heights, while employee wages remain static. Utilizing a fixed-effect regression model and analyzing 5,407 observations from Korean listed companies between 2018 and 2020, the study shows a positive association between pay disparity (coef = 0.034, p-value < 0.01) and investment inefficiency, with pay disparity increasing the level of investment inefficiency by fostering overinvestment. Furthermore, the study shows that the interaction term between pay disparity and quantitative (coef = –0.246, p-value < 0.01) and qualitative (coef = –2.104, p-value < 0.01) investments in internal control personnel is negative and significant, indicating that the positive link between pay disparity and investment inefficiency is lessened when there is a higher quantitative and qualitative investment in internal control personnel. By offering a more comprehensive understanding of the conflicting evidence about the impact of pay disparity and the role of investment in internal control personnel in moderating the negative effect of pay disparity on investment efficiency, this study contributes to the existing literature. The findings of the study suggest that companies aiming to minimize investment inefficiency should consider not only addressing pay disparity but also investing in internal control personnel.
E-Finance : Mitigation of Fraud Tendency in Indonesia Rusdianti, Imanita Septian; Irmadariyani, Ririn; Kustono, Alwan Sri
IJEBD (International Journal of Entrepreneurship and Business Development) (Online),
05/2022, Letnik:
5, Številka:
3
Journal Article
Recenzirano
Odprti dostop
Purpose: This research aims to determine the application of e-finance in the Lumajang Regency DPUTR and its role in improving internal control and mitigating fraud risk with fraud diamond theory ...analysis.
Design/methodology/approach: This research is qualitative case study research with descriptive methods. Data collection techniques use observation, documentation and semi-structured in-depth interviews.
Findings: Data analysis techniques through the stages of plan, design, prepare, collect, analyze, share. The results of this study include: 1) The application of e-finance in the Lumajang Regency DPUTR based on realtime online which is integrated with all LUMAJANG REGENCY OPDs to facilitate financial reporting in accordance with public sector accounting rules to prevent fraud so as to create transparency and can be accounted for; 2) Based on diamond theory fraud analysis, the application of e-finance is able to mitigate risks. fraud; 3) E-finance plays an important role in improving the internal control of the Lumajang Regency DPUTR.
Research limitations/implications: The limitation of this research is the lack of theoretical foundations and previous research on the application of e-finance in public sector organizations. This finding provides solutions to public sector organizations in minimizing fraud through the application of e-finance applications by using fraud diamond theory analysis.
Practical implications: This study adds literature on the application of e-finance to public sector organizations and its role in mitigating the risk of fraud which has not been discussed in previous studies.
Originality/value: This paper is original.
Paper type: Research paper
Using archival data of the Chinese A-share listed companies from 2011 to 2019, this article empirically examines the effectiveness of the Chinese carbon emission trading pilot, from the perspective ...of market-ranked corporate environmental performance. The main findings demonstrate that compared with companies not selected in the pilot, regulated enterprises tend to create a better environmental performance after the implementation of the pilot. Second, regarding the two possible influential channels, the lowering production level channel is empirically supported, while the increasing green investment channel lacks salient explanatory power. Finally, greater environmental pressures and better internal control quality present synergistic effects in amplifying the positive connection between the pilot and corporate environmental performance. Our conclusions remain valid under various robustness test methods. Potential related directions for future research are also identified and suggested in this article. Overall, using the Chinese carbon emission trading pilot as a research setting, our study provides additional evidence on whether and how environmental regulations affect corporate environmental performance ranked by capital market participants.
The Financial and Development Supervisory Agency forms Siskeudes to facilitate the village governance system and the village funds management. Internal control is one of the essential components to ...mitigate the risk of misuse of village funds. This study aims to analyze the implementation of internal control and the effectiveness of the implementation of internal control in controlling risk in the Siskeudes using the indicators listed in the Minister of Village Regulation Number 19 of 2015. The research was conducted in Gedangan Village using a qualitative descriptive method. The data was obtained through the process of interview and observation, analysis technique used is data triangulation. The results and discussion of the study indicate that the internal control in the village financial system has been implemented quite effectively because there are internal control efforts applied to each indicator in Minister of Village Regulation Number 19 of 2015. However, there is still a potential fraud because several internal control indicators that have been implemented not been followed up appropriately and periodically
The purpose of this study is to analyze how the expertise of internal accounting control personnel impacts financial statement conservatism. This study analyzed companies listed on the Korean stock ...market. Listed companies in Korea have been disclosing information on internal accounting personnel since 2012. Using a fixed-effect regression model, an analysis of 3,276 firm-years from 2012 to 2018 shows a positive correlation between the expertise of internal accounting control personnel and financial statement conservatism. The results from Ball and Shivakumar’s (2006) CF, DD, and Jones models are all significant at the 1% level, enhancing the robustness of the study’s findings. The coefficients were 0.872, 0.869, and 0.846, and the t-values were 3.93, 3.95, and 3.83 in each model. This indicates that firms with CPAs (Certified Public Accountant) among their internal accounting control personnel show stronger tendencies toward conservatism compared to those without CPAs. Furthermore, an analysis based on the firm ownership structure reveals a positive correlation between internal accounting control personnel expertise and financial statement conservatism in a non-Chaebol subsample (coefficient = 1.043, t-value = 3.58 in CF model); however, the results in the Chaebol subsample were not significant. This suggests that while having CPAs involved in non-Chaebol firms’ internal control is effective, it is not effective in Chaebol companies that are highly influenced by their owners.
ABSTRACT
In this study, we examine whether firms respond to internal control weaknesses (ICWs) by requiring accounting-specific skills when hiring rank-and-file employees. Using unique data ...containing an extensive collection of job postings, we document significant increases in firms’ job postings that list accounting skills after the disclosure of an ICW. This effect is more pronounced for firms with better financial resources and when ICWs are more severe or personnel-related. In addition, our results extend to employees that are not specifically designated as accountants, suggesting a broader role for rank-and-file employees in influencing internal control quality. Finally, we find that increases in job postings with accounting skill requirements are associated with improvements in internal controls and a higher likelihood of ICW remediation. Overall, our findings shed new light on how firms respond to ineffective internal controls by increasing their emphasis on accounting skills in their workforce.
Data Availability: Data are publicly available from the sources identified in the text.
JEL Classifications: G30; J23; M41; M42.
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