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The Impact of Cumulative Career Experience of Internal Control Managers on Firms' Efficiency in Different Information Environments

Year: 2025

Type: article

Abstract: This study investigates the effect of internal control (IC) managers' cumulative career experience on the operational efficiency of Korean listed firms between 2018 and 2020. Building on the premise that managers with extensive experience positively influence ICs and the internal information environment, this study hypothesises that cumulative career experience of an IC manager is also positively associated with a firm's operational efficiency. To empirically assess efficiency, this study applies data envelopment analysis (DEA), a nonparametric technique that evaluates relative efficiency based on multiple input and output measures. The results suggest that IC managers with greater cumulative experience significantly enhance a firm's efficiency. Moreover, this effect is more pronounced in firms operating within weaker accounting information environments, where managerial experience plays a critical role in improving efficiency.

Source: Economic and business review

DOI: 10.15458/2335-4216.1360

Authors: Inkyung Yoon, Hansol Lee, Dongjoon Choi

Institutions: Gachon University, Kangwon National University, Chungnam National University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4416920438

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