The Mediating Effect of Internal Control for the Impact of Institutional Shareholding on Corporate Financial Performance*

Li, Xiao

doi:10.1111/ajfs.12368

Cited by 10 publications

(16 citation statements)

References 60 publications

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“…With reference to Li (2020) [ 14 ], and Li (2022) [ 49 ], the following panel regression Models 1, 2 and 3 are constructed, to verify Hypotheses 1, 2 and 3 above. For the control variables in Models 1 to 3, to weaken the endogeneity caused by reverse causality, R&D, LEV, ROA, TAT, SGR, LnSALARY, LnASSET, and AUDIT are taken as first-order lags in regression.…”

Section: Data Source Variable Definition and Model Settingmentioning

confidence: 99%

“…If the differences of these characteristic variables affect financial mismatch and innovation performance, then there may be interference factors in the relations among IC, financial mismatch and innovation performance based on full-sample analyses. Therefore, with reference to Li (2022) [ 49 ], a dummy variable (MIC) is set as the explained variable in Logit Model 5. If corporate DIB · IC index is greater than its corresponding industry-annual median, this study considers that IC is more effective, and MIC is 1.…”

Section: 2 Re-measuring Ic Effectivenessmentioning

confidence: 99%

“…IC effectiveness depends on the efficiency and effect of overall operation. Therefore, in line with Li (2022) [49], this study evaluates IC effectiveness in accordance with the comprehensive index of "Dibo � IC Index of Listed Companies".…”

Section: Explanatory Variablementioning

confidence: 99%

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Corporate internal control, financial mismatch mitigation and innovation performance

Xiao

Zhao

2022

PLoS ONE

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Based on the resource allocation optimization theory, from the perspective of internal control (IC) and financial mismatch jointly affecting technological innovation, this study selects the listed enterprises in China’s capital market from 2012 to 2020 as the sample, and explores the mechanism among IC, financial mismatch and technological innovation. The results show that effective IC significantly promotes corporate innovation, and mitigates financial mismatch. The mitigation of financial mismatch presents a significant mediating effect between effective IC and innovation output. In Discussion, this study finds that the effects are significantly reflected in non-state-owned enterprises, but not in state-owned enterprises. Finally, it is suggested to improve IC effectiveness continuously, to stimulate innovation vitality, optimize financial resources allocation, and foster new momentum for economic development. And it is suggested to facilitate the transmission effect that effective IC mitigates financial mismatch, and enhances innovation output. Also, the innovation activities in state-owned and non-state-owned enterprises should be coordinated to promote the steady and healthy development of the economy.

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Section: Data Source Variable Definition and Model Settingmentioning

confidence: 99%

Section: 2 Re-measuring Ic Effectivenessmentioning

confidence: 99%

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Corporate internal control, financial mismatch mitigation and innovation performance

Xiao

Zhao

2022

PLoS ONE

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“…As an important governance mechanism, IC arises from management needs. Its basic functions involve check and constraint, protection and guidance, supervision and influence, measurement and evaluation [ 38 ]. Effective IC affords an important guarantee for achieving high-quality development.…”

Section: Literature Review Theoretical Analysis and Research Hypothesismentioning

confidence: 99%

Corporate digital transformation, internal control and total factor productivity

Li,

Zhao,

Zhao

2024

PLoS ONE

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Based on Resource-based theory and Internal Control (IC) theory, this study elucidates the impacts of corporate digital transformation on total factor productivity, and IC effectiveness, as well as the mechanism among digital transformation, IC and total factor productivity. The results show that digital transformation promotes total factor productivity and IC effectiveness. And effective IC has a significant mediating effect for the impact of digital transformation on total factor productivity. Heterogeneity discussion shows that compared with high-tech enterprises, in non-high-tech ones, digital transformation increases total factor productivity, and more significantly enhances IC effectiveness, presenting a mechanism that digital transformation facilitates IC, and increases total factor productivity. For non-high-tech enterprises, with higher heterogeneity of executive education backgrounds, digital transformation promotes IC effectiveness and total factor productivity, showing the transmission effect among digital transformation, IC and total factor productivity. Finally, it is suggested that the regulatory authorities advance digital infrastructure construction, to reinforce IC and risk prevention, thereby increase total factor productivity. And enterprises grasp the opportunity of digital economy development, promote the mechanism that digital transformation facilitates IC effectiveness, and increases total factor productivity. Non-high-tech ones motivate digital elements’ governance efficacy, optimize executive structure, coordinately promote digital strategy, and help the national economy acquire high-quality development. The study provides enlightenments to achieve high-quality development.

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“…Therefore, considering the authority and completeness of the data, this study followed Li X. (2022) and selected the DIB internal control index to rate the level of internal control of listed companies in China [58].…”

Section: Moderating Variables Internal Controlmentioning

confidence: 99%

Corporate Social Responsibility and Sustainability: From a Corporate Governance Perspective

Jin

2022

Sustainability

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Sustainable corporate development has become essential for many enterprises in the context of economic globalization and fierce technological competition. In fact, it is being tackled at a strategic level by most companies. The fulfillment of corporate social responsibility (CSR) is significant in building a corporate image, improving brand competitiveness, and promoting sustainable corporate development. Simultaneously, the level of corporate governance is a crucial factor in an enterprise’s long-term development. Therefore, this study clarifies whether CSR has a positive impact on the sustainable development of enterprises through empirical analysis; it also analyzes the effects of internal governance factors on the relationship between the two, from the perspective of corporate governance. A fixed-effects regression analysis was conducted on a sample of Chinese A-share listed companies from 2015 to 2019. According to the results, active CSR can promote sustainable development. Furthermore, corporate governance factors such as internal control, management capabilities, and accounting information quality have a moderating role in the CSR process on sustainable corporate development. This study provides a theoretical basis for future research on CSR and sustainable development, and its findings can inspire governments and enterprises from the perspective of corporate governance.

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The Mediating Effect of Internal Control for the Impact of Institutional Shareholding on Corporate Financial Performance*

Cited by 10 publications

References 60 publications

Corporate internal control, financial mismatch mitigation and innovation performance

Corporate internal control, financial mismatch mitigation and innovation performance

Corporate digital transformation, internal control and total factor productivity

Corporate Social Responsibility and Sustainability: From a Corporate Governance Perspective

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