274754

Developing a quantitative index for evaluating the effectiveness of internal control and testing its impact on predicting stock crash risk

Article

Last updated: 04 Jan 2025

Subjects

-

Tags

مقالات تجارية

Abstract

Abstract

The main objective of the study is to develop a quantitative index for evaluating the effectiveness of internal control and to test its effect on predicting the risk of the stock price crash risk. To achieve this objective, the study was conducted through three steps, Firstly: Developing a quantitative index to evaluate the effectiveness of the internal control of the Egyptian companies, this index is based on the internal control index prepared by Chen et al. (2017), taking into consideration the revised COSO standards for internal control in 2013, the special circumstances of the Egyptian business environment, the controls of the corporate governance guide updated in 2016, the relevant accounting and auditing standards, the Egyptian Companies Law, and the regulations and rules for listing and delisting in the Egyptian Stock Exchange, in addition to the findings of previous relevant research, Internal control was evaluated by the Analytical Hierarchy Methodology (AHP). The second step was the evaluation of the effectiveness of internal control in light of the proposed index for a sample of (49) non-financial companies out of the total listed companies on the Egyptian Stock Exchange within the EGX100 index during the period from 2018 to 2020, with a total of (147) observations. Finally, the proposed index was tested by measuring the effect of the level of effectiveness of internal control on the risk of stock price crash risk, which was measured by two measures DUVOL and NSCKEW.

DOI

10.21608/sjsc.2022.175721.1206

Keywords

Internal Control Effectiveness, Internal Control Index, COSO, Stock Crash Risk ملخص الدراسة:

Authors

First Name

السيد عيد محمد

Last Name

عيد

MiddleName

-

Affiliation

کلية التجارة جامعة المنوفية

Email

s_eid85@yahoo.com

City

-

Orcid

-

First Name

نسرين محمد سعيد

Last Name

المليح

MiddleName

-

Affiliation

كلية التجارة جامعة المنوفية

Email

nesreen.mohamed@menofia.edu.eg

City

-

Orcid

-

Volume

49

Article Issue

2

Related Issue

38772

Issue Date

2023-04-01

Receive Date

2022-11-19

Publish Date

2023-04-01

Page Start

9

Page End

58

Print ISSN

2682-387X

Online ISSN

2735-4156

Link

https://sjsc.journals.ekb.eg/article_274754.html

Detail API

https://sjsc.journals.ekb.eg/service?article_code=274754

Order

18

Type

المقالة الأصلية

Type Code

1,473

Publication Type

Journal

Publication Title

المجلة العلمية للبحوث التجارية (جامعة المنوفية)

Publication Link

https://sjsc.journals.ekb.eg/

MainTitle

Developing a quantitative index for evaluating the effectiveness of internal control and testing its impact on predicting stock crash risk

Details

Type

Article

Created At

26 Dec 2024