Research on the Impact of Digital Development on the Quality of Internal Control in Enterprises

Bin He; Xiao Tian

doi:10.54691/0y09er79

Authors

Bin He
Xiao Tian

DOI:

https://doi.org/10.54691/0y09er79

Keywords:

Digitalization; Internal Control Quality; Internal Control Elements.

Abstract

In order to adapt to the current trend of digital economy development and explore ways to improve the effectiveness of internal control quality, this study investigates the impact of digital development on internal control quality. Taking A-share listed companies in Shanghai and Shenzhen from 2012 to 2021 as the research object, this study found through empirical analysis that digital development can improve the quality of internal control of enterprises, and this conclusion still holds true after a series of robustness tests. Furthermore, from the perspective of enterprise characteristics, further research has found that in larger and capital intensive enterprises, the impact of digital development on internal control quality is more significant. The above conclusions have certain reference value for scientifically promoting the digital transformation and development of China's physical industries and effectively promoting the improvement of internal control levels in enterprises.

Downloads

Download data is not yet available.

References

[1] Huang Qunhui, Yu Yongze, Zhang Songlin Internet Development and Manufacturing Productivity Improvement: Internal Mechanism and China's Experience [J]. China Industrial Economy, 2019 (08): 5-23.

[2] Ding Zhifan Research on the Mechanism of Digital Economy Driving High Quality Economic Development: A Theoretical Analysis Framework Exploration of Modern Economy, 2020 (1): 85-92.

[3] Bai Yongxiu, Song Liting Political Economy Analysis of the Impact of Digital Economy on Economic Activities [J], Journal of Lanzhou University (Social Sciences Edition), 2021, 49 (04): 78-85.

[4] He Wenbin Analysis of the Effect of Digital Economy on the Upgrading and Restructuring of China's Manufacturing Industry from the Perspective of Global Value Chain [J]. Asia Pacific Economy, 2020, (03):115-130.

[5] Zhao Chenyu, Wang Wenchun, Li Xuesong, How Digital Transformation Affects Total Factor Productivity of Enterprises [J], Finance and Trade Economics, 2021, 42 (7): 114-129.

[6] Liu Shuchun, Yan Jinchen, Zhang Sixue et al. 2021. Can digital transformation of enterprise management improve input-output efficiency? [J] Management World, 37 (5): 170-190,13.

[7] Xiang Rui, Xu Jiuping, Yang Yating Background characteristics of the director of the audit committee and the quality of internal control in the company [J]. Audit Research, 2017 (04): 73-80.

[8] Ma Ying, Wang Man, Ma Yong, etc Supervision or Collusion: Multiple Major Shareholders and the Quality of Internal Control in Companies [J]. Financial Theory and Practice, 2019, 40 (02): 83-90.

[9] Ni Kejin, Liu Xiuyan Digital Transformation and Enterprise Growth: Theoretical Logic and Chinese Practice [J]. Economic Management, 2021, 43 (12): 79-97.

[10] Xu Yu, Feng Junke, Li Ruoxin Research on the Relationship between CEO Incentives, Media Attention, and the Effectiveness of Internal Control [J]. Audit and Economic Research, 2017, 32 (02): 35-45.

[11] Chu Jian, Fang Junxiong External regulatory environment and individual compensation incentives for independent directors: a study from the perspective of spillover effects of regulatory penalties [J]. Accounting and Economic Research, 2021, 35 (06): 37-57.

[12] Zhang Zenglian, Liu Yiting Can government auditing enhance the effectiveness of internal control in enterprises-- Empirical analysis of PSM-DID based on the announcement of audit results of central enterprises by the National Audit Office [J]. Economic System Reform, 2019 (03): 171-178.

[13] Balsam S , Jiang W , Lu B .Equity Incentives and Internal Control Weaknesses[J].Social Science Electronic Publishing[2024-12-19].