Executive Promotion Incentives and the Effectiveness of Internal Control of Listed Construction Companies
Publication: ICCREM 2022
ABSTRACT
Internal control, as an important means and system measure to ensure the orderly and healthy operation of listed construction companies, can effectively ensure that listed construction companies achieve their business goals, legal compliance goals, asset safety goals, and strategic goals. As the main way to align the interests of senior managers and shareholders, executive incentives have a very important impact on the effectiveness of internal control. This article first analyzes and discusses the mechanism of the correlation between executive promotion incentives and internal control, puts forward the research hypothesis of this article, then conducts an empirical analysis of the impact of executive promotion incentives on the effectiveness of internal control, and finally draws two research conclusions: (1) the implementation of executive promotion incentives can improve the effectiveness of internal control, and (2) the higher the level of incentives, the more effective the internal control.
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ICCREM 2022
Pages: 709 - 715
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Published online: Dec 15, 2022
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