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Fuzzy Governance Model

Author

Listed:
  • Enriqueta Mancilla-Rendón

    (Dirección de Investigación, Universidad La Salle México, Ciudad de México 25298, Mexico)

  • Carmen Lozano

    (Dirección de Investigación, Universidad La Salle México, Ciudad de México 25298, Mexico)

  • Enrique Torres-Esteva

    (Facultad de Negocios, Universidad La Salle México, Ciudad de México 25298, Mexico)

Abstract

This article aims to analyze the functions of corporate governance agents as a key part of the study and evaluation of the internal control by the independent auditor to propose a governance fuzzy model based on legality. This is a descriptive–hermeneutical study based on mercantile-securities law, the code of best practice of corporate governance, and auditing standards. The research design is cross-sectional and uses fuzzy logic theory as an alternative tool in contrast to classical mathematical models. The results suggest that corporate governance agents strongly influence the application of a management system. Evidence is given regarding the positive relationship between the functions of corporate governance agents as a management system. Additionally, the importance of an internal control management system as an inherent mechanism for governance is proven. The scientific value of this work lies in showing how the interaction between the application of mathematical models based on fuzzy set theory and the qualitative attributes of internal control policies and practices. It is a tool to evaluate governance as a management system for decision making. This work emphasizes that a model based on fuzzy sets is useful to evaluate a management system of internal control policies and procedures necessary to improve corporate governance.

Suggested Citation

  • Enriqueta Mancilla-Rendón & Carmen Lozano & Enrique Torres-Esteva, 2021. "Fuzzy Governance Model," Mathematics, MDPI, vol. 9(5), pages 1-16, February.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:5:p:481-:d:506328
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    References listed on IDEAS

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    1. Antonio Ruiz Porras & William Henry Steinwascher Sacio, 2008. "Gobierno corporativo, diversificación estratégica y desempeño empresarial en México," Revista de Administración, Finanzas y Economía (Journal of Management, Finance and Economics), Tecnológico de Monterrey, Campus Ciudad de México, vol. 2(1), pages 58-73.
    2. Yahn-Shir Chen & Enny Susilowati Mardjono & Yi-Fang Yang, 2020. "Competition and Sustainability: Evidence from Professional Service Organization," Sustainability, MDPI, vol. 12(18), pages 1-15, September.
    3. Jaime Fabián Díaz Córdova & Edisson Coba Molina & Paúl Navarrete López, 2017. "Fuzzy logic and financial risk. A proposed classificationof financial risk to the cooperative sector," Contaduría y Administración, Accounting and Management, vol. 62(5), pages 33-34, Diciembre.
    4. Karla Johnstone & Chan Li & Kathleen Hertz Rupley, 2011. "Changes in Corporate Governance Associated with the Revelation of Internal Control Material Weaknesses and Their Subsequent Remediation," Contemporary Accounting Research, John Wiley & Sons, vol. 28(1), pages 331-383, March.
    5. Antonio Luis Moreno-Albarracín & Ana Licerán-Gutierrez & Cristina Ortega-Rodríguez & Álvaro Labella & Rosa M. Rodríguez, 2020. "Measuring What Is Not Seen—Transparency and Good Governance Nonprofit Indicators to Overcome the Limitations of Accounting Models," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
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    Cited by:

    1. Luciano Barcellos‐Paula & Carlos Agüero‐Olivos, 2022. "The strengthening of corporate governance based on applied fuzzy logic," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1736-1746, September.

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