Title : Internal Audit Function and Investment Efficiency: Evidence from Public Companies in Indonesia
Authors:
- Ardianto Ardianto
- Nadia Anridho
- Agnes Aurora Ngelo
- Wulandari Fitri Ekasari
- Imran Haider
Department : Accounting
Journal Name : Cogen Business & Management
Kinds of Journal:
Keywords : Internal Audit Function, Investment Efficiency, Consulting Role, Governance
Abstract:
This study examines the relationship between internal audit functions and investment efficiency. We want to test the Involvement of Internal Audit Functions in Corporate Strategy Management Decisions Like Investment Efficiency. This Study Employs All Non-Financial Public listed on the Indonesia Stock Exchange from 2016 to 2019, and we obtain 1,360 firm-year observations. We discover that the Internal Audit Function Negatively Affects Corporate Investment Efficiency. This implies that the internal audit function has a minor role in giving value-added service regarding investment decisions in the context of listed public compans in Indonesia. Our result is robust to the endogeneity test of heckman two-stages regression. Therefor, in the Context of Corporate Strategic Decisions Like Investment Efficiency, we document that the internal audit function does not efficiently enhance the efficiency of corporate investment decisions in the setting of Indonesian public compans. We expect this result to improve the insight regarding the internal audit function in Indonesia and encourage the practice of internal audits in Indonesian publicly listed compans Investment Decisions.
For details : https://doi.org/10.1080/23311975.2023.2242174
