Can board IT expertise improve corporate internal control?

Yuan Feng, Yihuan Mao, Jing Cai and Nan Xu

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: Using Chinese A-share listed companies from 2007 to 2020, we find that board IT expertise significantly improves corporate internal control. Directors with IT backgrounds achieve this by promoting information technology and enhancing “Control Activities” and “Information and Communication” elements in the internal control system. This effect is more potent in firms with high product market competition, agency costs, and operational risk. We contribute to the literature on IT governance and corporate governance by highlighting the importance of board IT expertise in enhancing internal control.

Keywords: Information system; Internal control; Board director; IT background (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001569

DOI: 10.1016/j.frl.2024.105126

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