The moderating effect of internal audit on the relationship between corporate governance mechanisms and corporate performance among Saudi Arabia listed companies

• Autores: Ebrahim Mohammed Al Matari, Mahfoudh Hussein Mgammal
• Localización: Contaduría y administración, ISSN 0186-1042, ISSN-e 2448-8410, Vol. 64, Nº. Extra 4, 2019 (Ejemplar dedicado a: Especial Gobierno Corporativo)
• Idioma: inglés
• DOI: 10.22201/fca.24488410e.2020.2316
• Títulos paralelos:
  • El efecto moderador de la auditoria interna en la relación entre mecanismos de gobierno corporativo y desempeño corporativo entre las compañías de Arabia Saudita que cotizan en bolsa
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    Este estudio primordialmente se enfoca en evaluar la capacidad de la función de auditoría interna para detectar y autoreportar el fraude. El trabajo investigó el papel moderador de la auditoría interna en la relación entre mecanismos de gobierno corporativo y desempeño corporativo (ROA) y el efecto directo de las características del gobierno corporativo y características de la auditoría interna sobre el gobierno corporativo de firmas registradas en el mercado de valores de Arabia Saudita. Ciento ochenta y ocho observaciones obtenidas de cuarenta y siete firmas financieras saudís se usaron en este estudio para los años 2014-2017. El estudio usó la regresión FGLS (mínimos cuadrados generalizados factibles) para probar las relaciones variables y probar los efectos moderadores del auditor interno sobre las características del gobierno corporativo y del desempeño corporativo. Los resultados empíricos resultantes soportaban una importante relación positiva entre consejeros no ejecutivos, tamaño del comité de auditoría, independencia del comité de auditoría y de la profesión de auditoría interna, y el desempeño corporativo. Se observaron también resultados negativos entre el tamaño del consejo, el tamaño de auditoría interna y educación sobre auditoría interna, y desempeño corporativo. En cuanto a los efectos moderadores, los resultados soportaron un importante papel moderador del tamaño de la auditoría sobre el tamaño del consejo y su relación con el desempeño corporativo. Este estudio amplía estudios anteriores dedicados a probar la teoría de la agencia y la teoría de dependencia de los recursos como las teorías que apuntalan el examen de la relación entre gobierno corporativo y desempeño corporativo. Se espera que el estudio contribuya a los estudios conceptuales y teóricos al subrayar temas que conciernen a la práctica del gobierno corporativo en firmas saudís registradas en bolsa. El estudio se centró en las características del comité de auditoría interna, características del gobierno corporativo y las prácticas óptimas de gobierno corporativo que los profesionales pueden utilizar cuando se trata del papel del comité de auditoría interna.

  • English

    This study primarily aimed to assess the internal audit function’s ability to detect and self-report fraud. The paper investigated the moderating role of internal audit on the relationship between corporate governance mechanisms and corporate performance (ROA) and the direct effect of corporate governance characteristics and internal audit characteristics on corporate governance of firms listed in the stock market of Saudi Arabia. One hundred and eighty-eight observations obtained from forty-seven Saudi financial firms were used in this study for the years 2014-2017. The study used the FGLS regression to test the variables relationships and to test the moderating effects of internal auditor on the corporate governance characteristics and corporate performance. The obtained empirical results supported a significant positive relationship between non-executive board, audit committee size, audit committee independence and internal audit profession, and corporate performance. Negative significant findings were also observed between the board size, internal audit size and internal audit education, and corporate performance. As for the moderating effects, the results supported a significant moderating role of internal audit size on the size of the board and its relationship with corporate performance.This study extends past studies dedicated to testing the agency theory and resource dependence theory as underpinning theories in examining the relationship between corporate governance and corporate performance. The study is expected to contribute to conceptual and theoretical studies by highlighting issues concerning corporate governance practice in Saudi listed firms.

    The study focused on the internal audit committee characteristics, corporate governance characteristics and the corporate governance best practices that practitioners can utilized when it comes to the role of internal audit committee.

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