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http://dx.doi.org/10.15207/JKCS.2022.13.01.365

The effect of Multiple Positions in the Board on the Quality of Internal Accounting Control System  

Jung, Woo-Sung (Department of Smart Asset Management, Busan University of Foreign Studies)
Publication Information
Journal of the Korea Convergence Society / v.13, no.1, 2022 , pp. 365-373 More about this Journal
Abstract
The purpose of this study is to determine the effect of concurrent appointment as a director on the quality of the internal accounting management system (IACS). For analysis, 9,343 KOSPI & KOSDAQ company-year data from 2014-2019, excluding the financial industry, were used. As a result of the analysis, it was confirmed that the quality of IACS decreased as the number of multiple positions in the director increased. Although there is a difference in the roles of inside and outside directors, it was found that the quality of IACS decreases equally as the number of board members. According to the business hypothesis, this can be said to be the result of the agency problem within the company because directors, who were more busy with concurrent positions as directors, did not put sufficient effort into their work. This study suggests that information on the concurrent position of directors can be a new indicator that reflects the characteristics of the board in evaluating the effectiveness of corporate governance.
Keywords
Internal Accounting Control System; Multiple position in the Board; Business hypothesis; Agency problem; Corporate governance;
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Times Cited By KSCI : 1  (Citation Analysis)
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