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Can board IT expertise improve corporate internal control?

Author

Listed:
  • Feng, Yuan
  • Mao, Yihuan
  • Cai, Jing
  • Xu, Nan

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.

Suggested Citation

  • Feng, Yuan & Mao, Yihuan & Cai, Jing & Xu, Nan, 2024. "Can board IT expertise improve corporate internal control?," Finance Research Letters, Elsevier, vol. 62(PA).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001569
    DOI: 10.1016/j.frl.2024.105126
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    References listed on IDEAS

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