Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks
The purpose of this study was to determine if senior management support (SMSI) in Yemeni commercial banks mediates the association between internal audit function (IAF) quality characteristics and improved corporate governance effectiveness (CGE). Internal auditors, heads of internal audit, chairmen...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-05-01
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| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18150/BBS_2023_02_Al-Yazidi.pdf |
| _version_ | 1797816583876247552 |
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| author | Abdulrahman Mohammed Al-Yazidi Adeeb Alhebri Ebrahim Mohammed Al-Matari Md. Faruk Abdullah Radwan Hussien Alkebsee |
| author_facet | Abdulrahman Mohammed Al-Yazidi Adeeb Alhebri Ebrahim Mohammed Al-Matari Md. Faruk Abdullah Radwan Hussien Alkebsee |
| author_sort | Abdulrahman Mohammed Al-Yazidi |
| collection | DOAJ |
| description | The purpose of this study was to determine if senior management support (SMSI) in Yemeni commercial banks mediates the association between internal audit function (IAF) quality characteristics and improved corporate governance effectiveness (CGE). Internal auditors, heads of internal audit, chairmen and participants in audit committees, CEOs, and financial management of Yemeni commercial banks were given a list of questions to answer. 158 full lists were obtained to evaluate after distributing the survey. For data analysis and hypothesis testing in this work, Smart PLS 3 was used. The study findings demonstrate a substantial relationship between CGE and IAF competence and due professional care (CPCI), IAF independence and objectivity (INOI), and IAF professional ethics (PEI). The outcomes of the study also demonstrate that there is no relationship between CGE and chief audit executive (CAE) Leadership Style (CLS). In terms of the moderate variable’s influence, the findings revealed that SMSI positively changes the link between CLS, CPCI, and corporate governance effectiveness. SMSI, on the other hand, has no influence on the link between INOI, PEI, and the efficacy of corporate governance. The findings add to the knowledge on IAF factors affecting the efficacy of CG and the role of SMSI in changing this relationship in developing countries such as Yemen.
AcknowledgmentThe authors extend their appreciation to the deanship of scientific research at King Khalid University for funding this work through large groups project under grant number (RGP.2/189/44). |
| first_indexed | 2024-03-13T08:39:48Z |
| format | Article |
| id | doaj.art-2f4f254ef2bb46878113406db63e689a |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-03-13T08:39:48Z |
| publishDate | 2023-05-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-2f4f254ef2bb46878113406db63e689a2023-05-30T12:49:01ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742023-05-01182486210.21511/bbs.18(2).2023.0518150Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banksAbdulrahman Mohammed Al-Yazidi0https://orcid.org/0000-0002-8130-115XAdeeb Alhebri1https://orcid.org/0000-0002-4230-8885Ebrahim Mohammed Al-Matari2https://orcid.org/0000-0001-9247-2766Md. Faruk Abdullah3https://orcid.org/0000-0002-9111-1755Radwan Hussien Alkebsee4https://orcid.org/0000-0001-6904-3920Ph.D. Student, Sultan Zainal Abidin UniversityPh.D., Assistant Professor of Accounting, King Khalid UniversityPh.D., Associate Professor, Department of Accounting, College of Business, Jouf University, Kingdom of Saudi Arabia and Faculty of Commerce and Economics, Amran University, YemenPh.D., Sultan Zainal Abidin UniversityPh.D., Assistant Professor of Accounting, Administrative Sciences College, Alqalam University for Humanities and Applied SciencesThe purpose of this study was to determine if senior management support (SMSI) in Yemeni commercial banks mediates the association between internal audit function (IAF) quality characteristics and improved corporate governance effectiveness (CGE). Internal auditors, heads of internal audit, chairmen and participants in audit committees, CEOs, and financial management of Yemeni commercial banks were given a list of questions to answer. 158 full lists were obtained to evaluate after distributing the survey. For data analysis and hypothesis testing in this work, Smart PLS 3 was used. The study findings demonstrate a substantial relationship between CGE and IAF competence and due professional care (CPCI), IAF independence and objectivity (INOI), and IAF professional ethics (PEI). The outcomes of the study also demonstrate that there is no relationship between CGE and chief audit executive (CAE) Leadership Style (CLS). In terms of the moderate variable’s influence, the findings revealed that SMSI positively changes the link between CLS, CPCI, and corporate governance effectiveness. SMSI, on the other hand, has no influence on the link between INOI, PEI, and the efficacy of corporate governance. The findings add to the knowledge on IAF factors affecting the efficacy of CG and the role of SMSI in changing this relationship in developing countries such as Yemen. AcknowledgmentThe authors extend their appreciation to the deanship of scientific research at King Khalid University for funding this work through large groups project under grant number (RGP.2/189/44).https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18150/BBS_2023_02_Al-Yazidi.pdfcommercial bankscorporate governanceinternal auditperformanceYemen |
| spellingShingle | Abdulrahman Mohammed Al-Yazidi Adeeb Alhebri Ebrahim Mohammed Al-Matari Md. Faruk Abdullah Radwan Hussien Alkebsee Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks Banks and Bank Systems commercial banks corporate governance internal audit performance Yemen |
| title | Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks |
| title_full | Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks |
| title_fullStr | Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks |
| title_full_unstemmed | Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks |
| title_short | Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks |
| title_sort | role of quality determinants of the internal audit function in corporate governance effectiveness senior management support as moderator evidence from yemeni commercial banks |
| topic | commercial banks corporate governance internal audit performance Yemen |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18150/BBS_2023_02_Al-Yazidi.pdf |
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