The Influencing Mechanism of Internal Control Effectiveness on Technological Innovation: CSR as a Mediator

Xinyuan Wang, Zhenyang Zhang and Dongphil Chun
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Xinyuan Wang: Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea
Zhenyang Zhang: Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea
Dongphil Chun: Graduate School of Management of Technology, Pukyong National University, Busan 48547, Korea

Sustainability, 2021, vol. 13, issue 23, 1-17

Abstract: The study explores the relationship between internal control effectiveness, corporate social responsibility (CSR), and technological innovation. By establishing a mediating effect model, we analyzed the effect of internal control effectiveness on technological innovation. The study selected the data of Chinese A-share listed companies between 2014 and 2019 as the sample. The sources of variable indicators include China Stock Market and Accounting Research (CSMAR), DIB Internal Control database, and Hexun CSR score. The empirical study shows that internal control effectiveness is significantly and positively related to technological innovation. Enhancing internal control effectiveness has a significant positive effect on the fulfillment of corporate social responsibility. In the process of internal control effectiveness on technological innovation, corporate social responsibility functions as a mediating variable and plays a partial mediating role. The study provides empirical data to support listed companies’ emphasis on internal control and active fulfillment of social responsibility, thereby enhancing their technological innovation performance.

Keywords: internal control; technological innovation; corporate social responsibility; mediated effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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