The Impact of Managerial Characteristics on the Effectiveness of Internal Control in Enterprises
DOI:
https://doi.org/10.54097/atxp7q55Keywords:
Managerial Characteristics, Internal Control Effectiveness, DIB Internal Control Index.Abstract
Since the enactment of the Sarbanes-Oxley Act, internal control has gained increasing attention, highlighting its growing importance. However, in China, there remains room for improvement in the design, maintenance, and execution of internal control within enterprises. As key figures responsible for internal control, senior managers possess various internal and external characteristics that may influence its effectiveness. This study uses data from 200 randomly selected A-share listed companies on the Shanghai and Shenzhen stock exchanges in 2021. With Excel and SPSS, it analyzes the impact of different managerial characteristics on the effectiveness of corporate internal control. Findings reveal a positive correlation between characteristics like managers’ age, education level, and compensation, and the effectiveness of internal control, while gender shows no significant effect on control quality. Based on these results, recommendations are offered to guide the appointment of managers and the execution of internal control, providing valuable insights for enterprises.
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