Citation

Changxiang, Huang and Hamdan, Sunita Lylia and Abdullah Sani, Noridayu (2025) Empirical study on the leadership structure and working capital — based on the moderating effect of internal control. Asian Economic and Financial Review, 15 (5). pp. 710-727. ISSN 2305-2147

Text 1st+6458-AEFR15(5)2025-710-727-Malaysia.pdf - Published Version Restricted to Repository staff only Download (470kB)

Abstract

The purpose of this study is to examine the relationship between CEO-chairman separation, internal control, and working capital. To achieve this research objective, the study employs the least squares method, using a sample of 22,719 observations from A-share listed companies on the Shanghai and Shenzhen Stock Exchanges from 2007 to 2019. The main hypotheses are tested through the coefficients of a multiple linear regression equation. The results of this study indicate that the implementation of role separation between the CEO and Chairman can effectively reduce the cash cycle and improve the efficiency of working capital management. Furthermore, good internal controls not only help to improve the effectiveness of managing working capital, they also help to moderate the connection between role separation and the effectiveness of managing working capital. Furthermore, compared with state-owned enterprises, private enterprises demonstrate a more significant impact of internal control effectiveness on improving working capital management efficiency. This further highlights the critical role of internal control in the working capital management of private enterprises.

Item Type:	Article
Uncontrolled Keywords:	Cash cycle, Internal control, Leadership structure, Principal-agent theory, Property right nature, Working capital.
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management > HD57.7 Leadership
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	30 Jun 2025 02:28
Last Modified:	30 Jun 2025 02:28
URII:	http://shdl.mmu.edu.my/id/eprint/14144

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