• The Journal of Industrial Distribution & Business
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• v.10 no.12
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• pp.35-42
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• 2019

Purpose : This study examines The impact of human resource investment in internal control on stock price crash risk. Effective internal control ensures that information provided is complete and accurate, financial statements are reliable. By overseeing management, internal control systems can reduce agency costs between management and outside parties. In Korea, firms have to disclose information about internal control systems. The working experience of human resources in internal control systems is also provided for interested parties. If a firm hires more experienced internal control personnel, it can better facilitate the disclosure of information. Prior studies reported that information asymmetry between managers and investors increases future stock price crash risk. Therefore, the longer working experience internal control personnel have, the lower probability stock crashes have. Research design, data and methodology : This study analyzed the association between the working experience of internal control personnel and crash risk using regression analysis on KOSPI listed companies for fiscal years 2016 through 2017. The sample consists of 1,034 firm-years of non-financial firms whose fiscal year end on December 31. Career spanning data of internal control personnel was collected from internal control reports. The professionalism(IC_EXP) was measured as the logarithm of the average working experience of internal control personnel in months. Negative conditional skewness(NSKEW) and down-to-up volatility (DUVOL) are used to measure firm-specific crash risk. Both measures are based on firm-specific weekly returns derived from the expanded market model. Results : We find that work experience in internal control environment is negatively related to stock price crashes. Specifically, skewness(NSKEW) and volatility (DUVOL) are reduced when firms have longer tenure of human resources in internal control division. The results imply that firms with experienced internal control personnel are less likely to experience stock price crashes. Conclusions : Stock price crashes occur when investors realize that stock prices have been inflated due to information asymmetry. There is a learning effect when internal control processes are done repetitively. Thus, firms with more experienced internal control personnel could manage their internal control more effectively. The results of this study suggest that firms could decrease information asymmetry by investing in human resources for their internal control system.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.1087-1095
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• 2020

The research purpose of the article is to evaluate the effects of the internal control components on the effectiveness of internal control of transport construction enterprises in Vietnam, on the basis of which we made recommendations to contribute to improving the effectiveness of internal control. Sample was collected from Vietnamese medium and large transport construction enterprises, the total number of sample questionnaires sent was 400, 330 filled-up questionnaires was collected and 250 was used for the study purpose. Quantitative research method was used for the study with the help of the SPSS software. The variables in the model are as follows: the dependent variable is the effectiveness of internal control, 5 independent variables are: control environment, risk assessment, control activities, communication, and monitoring. The results of the analysis explain 80.4% variation as a result of the effect of internal control on the Vietnamese transport construction enterprise. All five components positively affect the effectiveness of internal controls in the order of influence, which are: control activities, control environment, communication, risk assessment and monitoring. This study contributes in providing more empirical evidence about the effects of internal control components on the effectiveness of internal control of transport construction enterprises in Vietnam. The study has proposed a number of recommendations to help transport construction enterprises improve control activities and contribute towards improving the effectiveness of internal control.

• The Journal of Economics, Marketing and Management
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• v.3 no.1
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• pp.33-39
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• 2015

Managers are always trying to be the best internal controls in their organizations copper approximate because they know that be effective internal control over previous systems, to fulfill the mission of the organization and minimize unexpected events will be extremely difficult. On the other hand, the existence of internal controls to increase efficiency, reduce head loss, assets and achieving a reasonable assurance of the reliability of financial statements and compliance with laws and regulations will be. Internal control, not an event, but a series of operations and activities on the basis of output. Internal controls help to achieve the goal of minimizing the problems of implementing appropriate internal controls. Internal control is an integral component of corporate governance that will provide reasonable assurance of achieving the organization's objectives. preventing, detecting errors and fraud goes to work. Responsibility for the prevention and detection of fraud and error in the public sector is the responsibility of managers. Managers of internal control and consistently applying appropriate accounting systems, this responsibility will play (Lin et al., 2011). Since the public sector organizations differ from each other, thus establishing internal controls cant be the same for all organizations and agencies of the public sector. Establish specific controls on each system to factors such as size, type of operation and organizational goals that the system is designed, it depends. On the other hand, rapid advances in information technology, the need to update internal control guidelines in relation to Create a new computer system so as to ensure that the activities of managers and effective control Should be updated if necessary.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.855-863
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• 2021

This study explores the role of the Accounting Information System (AIS) in mediating the relationship between internal control and the performance of employees. This study examines whether internal control would influence the performance of employees and whether the AIS would impact the performance of employees in Jordan's industrial small and medium-sized enterprises (SMEs). Internal control is expected to impact employee performance. The survey questionnaire was used to gather data. A random sampling approach was used to survey the respondents. A total of 270 questionnaires were distributed; only 203, with a 75% response rate, were available. The data was analyzed using AMOS and SPSS. The result from the analyses provides support for the hypothesis that AIS mediates the relationship between internal control and the performance of the employee. Specifically, this study found evidence that internal control yielded a strong positive relationship with employee performance and a positive relationship with AIS. The study also found that AIS had a positive relationship with the performance of the employee. In brief, internal control has major effects on employee performance. Also, the AIS mediates the relationship between internal control and the performance of the employee. The result of this research found that in the relationship between internal control and employee performance, AIS plays an important role.

• International Journal of Advanced Culture Technology
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• v.12 no.1
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• pp.293-298
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• 2024

The purpose of an internal control system is to prevent the occurrence of errors and fraud in the process of producing accounting information, thereby providing investors with reliable information. For the effective operation of an internal control system, it is necessary to secure a sufficient number of personnel and experienced staff. This study focuses on the personnel directly involved in producing accounting information, examining whether companies that invest in their internal control staff experience a mitigation in the phenomenon of valuation errors. The analysis revealed that the size and experience months of the personnel responsible for internal control have a significant negative relationship with valuation errors. This result implies that by securing sufficient personnel for the smooth operation of the internal control system and placing experienced staff within the system, investors can effectively make judgments about the intrinsic value based on quality accounting information, thereby reducing valuation errors.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.375-380
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• 2021

Internal control is important for monitoring operations of organizations. In order to achieve the quality of internal control, organizations need to recognize different perspectives in which the components of internal control play a decisive role. Internal control is a process designed by the manager and it is applied within the organization to provide reasonable assurance of the reliability of financial information and to comply with policies, procedures, rules, regulations and laws. The article uses the ordinary least squares method and the seven-point Likert scale to test the variables affecting the quality of internal control in 18 Vietnamese listed banks. The article surveyed 179 leaders of listed banks. The results show that there are three variables out of a total of five variables that positively affect the quality of internal control, including the control environment, control activities, and monitoring. Accordingly, the managers of Vietnamese listed banks need to pay attention to building a corporate culture environment, improve the quality of control activities, and periodically and regularly conduct the monitoring. It contributes to improving the quality of internal control and is also an opportunity to increase economic benefits for Vietnamese listed banks in the context of international economic integration.

• Journal of The Korean Association For Science Education
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• v.17 no.4
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• pp.347-358
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• 1997

Locus of Control of Reinforcement (LOCR)' is considered as one of the most important factors on responsible environmental behaviors(REB). It is defined as 'an individual's perception of his or her ability to bring about change through his or her behavior'. This psychological construct is divided up into two directions: the external locus and internal locus. The internal locus is important as a predictor of REB. Recently, 'The Environmental Action Internal Control Index: EAICI' has been developed and it is a valid and reliable instrument to measure the relationship of two variables. The purposes of this study were to develop a strategy to reinforce the internal locus or to converse external locus to internal locus. and to verify the effects by EAICI. A new strategy, 'Self Control Management Strategy' was based on the characteristics of internal locus and the key idea of this was to self-control and to manage the courses by themselves. EAICI scores of the control group was 99.83. All of them were internal and the LOCR of females was more internal than that of the males. This strategy was applied when the instructions were carried out on seven environmental issues by the experimental group. According to the results. the seven points of the EAICI were increased significantly. Therefore this strategy is helpful in reinforcing the internal locus or to converse external locus to the internal locus.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.927-939
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• 2020

This study aims at investigating the effects of internal control effectiveness on business survival of food businesses in Thailand through the mediators of productivity improvement and value creation. In this study, 155 food businesses in Thailand are the samples of the study. The results show that internal control effectiveness has a significant influence on productivity improvement and business survival. Productivity improvement critically affects value creation and business survival while value creation is an important determinant of business survival. However, internal control effectiveness has no relationship with value creation. Also, productivity improvement explicitly mediates the internal control effectiveness-business survival relationships. In summary, internal control effectiveness can enhance firms' sustainable competitive advantage, superior performance and long-term survival. Firms need to focus on internal control effectiveness through investing their assets and resources and utilizing their abilities, competencies and capabilities in order to continuously develop and improve their appropriate concepts and characteristics in an organization. Better internal control effectiveness definitely leads to more long-term survival. To generalize the research results, future research needs to collect data from other businesses and industries. Increased response rate of the study is important for future research to verify and confirm the research results.

• Journal of the Korea Society of Computer and Information
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• v.20 no.8
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• pp.35-43
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• 2015

Recently, internal information leaks is increasing rapidly by internal employees and authorized outsourcing personnel. In this paper, we propose a method to integrate internal control systems like system access control system and Digital Rights Managements and so on through expansion model of SIEM(Security Information Event Management system). this model performs a analysis step of security event link type and validation process. It develops unit scenarios to react illegal acts for personal information processing system and acts to bypass the internal security system through 5W1H view. It has a feature that derives systematic integration scenarios by integrating unit scenarios. we integrated internal control systems like access control system and Digital Rights Managements and so on through expansion model of Security Information Event Management system to defend leakage of internal information and customer information. We compared existing defense system with the case of the expansion model construction. It shows that expanding SIEM was more effectively.

• 한국경영정보학회:학술대회논문집
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• 2007.11a
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• pp.117-122
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• 2007

Recently, as the management environments are changing rapidly and the uncertainty is becoming larger, the needs of internal control for management and IS become stronger. In order to construct a new internal control system for IS, it is necessary to evaluate the former research of the system. This study emphasizes the importance of effective internal control system, presents a conceptual framework for the preceding factors to consider, and verifies empirically the framework. This study sets the organization citizenship behavior, IS innovation resistance, and IT capability from the viewpoint of Socio-Technical system as the preceding factors for the effectiveness of internal control system. A research model, affecting the above factors on IS capability as a mediating variable of the internal control effectiveness for the use of IS, is set up. PLS-Graph 3.0 is used to verify the model. We found that the internal control effectiveness have affirmative effect on information capability, a surrogate variable of the IS effectiveness and a mediation effect is meaningful.