Relevance of internal controls for risk management: empirical evidence from the perception of its executors and reviewers in a multinational company

IF 5.5 Q1 BUSINESS
I. Beuren, V. Machado, Alexsson Jr Dall Agnol
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引用次数: 0

Abstract

Purpose The perception of the relevance of risk management reports and the system of internal controls permeates the risk management of multinational companies. Shedding light on perceived relevance, on the one hand, can serve as a guide for improvements in communication between headquarters and subsidiaries; on the other hand, it can lead to greater involvement of subsidiaries in company policies. Thus, this study aims to analyze the relevance of internal controls for risk management in the perception of its executors and reviewers in a multinational company. Design/methodology/approach A survey was conducted with the executors and reviewers of the internal controls of a multinational company. To the collected data, structural equation modeling was applied. Findings The perceived relevance of internal controls by the subsidiaries directly and positively influences the perceived relevance of the reporting of their specific and standardized reports for all subsidiaries. In addition, the perception of the relevance of standardized reports for all subsidiaries demonstrates a direct and positive influence on the familiarity with the regulations regarding the reporting of internal controls. Originality/value To the best of the authors’ knowledge, this paper is the first to examine the relevance of internal controls for risk management in the perception of its executors and reviewers of subsidiaries of a multinational company. In this way, it provides a useful contribution to the literature and insights to promote improvements in the communication process between headquarters and subsidiaries of different countries regarding risk management reports and the system of internal controls.
内部控制与风险管理的相关性:来自跨国公司执行人员和审查人员感知的经验证据
对风险管理报告与内部控制制度的关联性的认识渗透到跨国公司的风险管理中。一方面,阐明感知到的相关性可以作为改进总部与子公司之间沟通的指南;另一方面,它可能导致子公司更多地参与公司政策。因此,本研究旨在分析跨国公司内部控制在其执行者和审查者的感知中与风险管理的相关性。设计/方法/方法对一家跨国公司内部控制的执行者和审查者进行了调查。对收集到的数据进行结构方程建模。子公司对内部控制的感知相关性直接和积极地影响所有子公司对其具体和标准化报告报告的感知相关性。此外,对所有子公司的标准化报告的相关性的认识表明,对内部控制报告条例的熟悉程度有直接和积极的影响。原创性/价值据作者所知,本文是第一个在跨国公司子公司的执行人员和审查人员的感知中检查内部控制与风险管理的相关性的论文。通过这种方式,它为促进不同国家的总部和子公司之间在风险管理报告和内部控制制度方面的沟通过程的改进提供了有益的文献和见解。
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来源期刊
CiteScore
11.20
自引率
33.90%
发文量
68
期刊介绍: Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.
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