Role of quality determinants of the internal audit function in corporate governance effectiveness. Senior management support as moderator: Evidence from Yemeni commercial banks

  • 426 Views
  • 265 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

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.

Acknowledgment
The 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).

view full abstract hide full abstract
    • Figure 1. Structural model with path coefficient (R2)
    • Table 1. Test of convergent validity, reliability, and loadings Cronbach’s Alpha
    • Table 2. The AVE square root
    • Table 3. Cross-validated construct redundancy
    • Table 4. Hypothesis testing using path coefficient
    • Table 5. Results of the moderator interaction model’s hypothesis testing
    • Conceptualization
      Abdulrahman Mohammed Al-Yazidi
    • Data curation
      Abdulrahman Mohammed Al-Yazidi
    • Software
      Abdulrahman Mohammed Al-Yazidi
    • Writing – original draft
      Abdulrahman Mohammed Al-Yazidi
    • Formal Analysis
      Adeeb Alhebri, Ebrahim Mohammed Al-Matari
    • Methodology
      Adeeb Alhebri, Md. Faruk Abdullah, Radwan Hussien Alkebsee
    • Supervision
      Adeeb Alhebri, Ebrahim Mohammed Al-Matari, Md. Faruk Abdullah
    • Writing – review & editing
      Adeeb Alhebri, Ebrahim Mohammed Al-Matari, Md. Faruk Abdullah, Radwan Hussien Alkebsee
    • Funding acquisition
      Ebrahim Mohammed Al-Matari
    • Project administration
      Md. Faruk Abdullah, Radwan Hussien Alkebsee
    • Validation
      Md. Faruk Abdullah
    • Investigation
      Radwan Hussien Alkebsee
    • Visualization
      Radwan Hussien Alkebsee