Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 10

Sustainable Compliance Programs in Complex Organizations Global Journal of Management and Business Research ( A ) XXIII Issue X Version I Year 2023 12 © 2023 Global Journals Table 4: Logistic Regression of Effect of Internal Control on Corporate Governance Status (where 1 = Corporate Governance Status; 0 Otherwise) Predicted sign UK (n =29) SOX (n = 27) Financial (n =20) Intercept ? -1.939* -1.344 -291.75 Long-termdebt + 0.001* 0.001** 0.003 LNAssets + 0.001 0.001** 0.001 TobinsQ 0.272* -0.006 5.672 ROA -21.590** -0.008 21.84 ROE 13.338* -1.322 -578.53 Audit 0.000 0.000 0.001 IASize + -272.17 -261.17 111.05 IAQualify + 3.212** -0.230 81.57 IAExp + -2.017 -0.009 220.13 IAgrow + -0.008 -0.003 0.036 IAtrainquality + 0.216 0.421** 17.918 Chisq-statistic 38.945 18.078 89.974 Adj R-squared Cox and Snell 0.385 0.202 0.675 Table Notes: UK is a dummy variable set to 1 if UK, 0 otherwise; Asset is total assets of firm as at 2005 (compustat #89); MB is the ratio of market to book (compustat #135); ROA is ratio of income before taxes over total assets, averaged for three years ended 2004 (compustat #21/#89); ROE is ratio of income before taxes over total shareholders equity, averaged for three years ended 2004 (compustat #21/#135); VAS is audit fee, averaged for four years ended 2005; IA size is ratio of number of IA staff to total number of company staff (survey question 12/question 7); IAqual is ratio of number of IA staff with accounting qualifications over total size of IA (survey question 13i/12); IA exp is ratio of number of experienced IA staff to number of IA staff (survey question 13ii/12); IA growth is difference between number of IA staff in 2005 compared to 2002, divided by number of IA staff on average (survey question 15-question 12/ave); IA quality is self-assessed effectiveness on a likert scale of 1 to 6 (survey question 16); SOX is dummy variable set to 1 if NYSE cross listed and thus subject to SOX, 0 otherwise; financial is dummy variable set to 1 if financial firm, zero otherwise * Significant at 0.10 level** Significant at 0.05 level ***Significant at 0.01 level Table 5: Ordinary Least Squares Regressions of Value at Risk Determinants Predicted Sign Earnings at Risk (UK=1) Cash Flow at Risk (Europe=1) Asset-liability at Risk (Financial =1) Intercept ? 0.019 -45.11 0.034 IASize - -167.62* 66.80 -984.0*** IAQualify + 0.273 2527.7* 2.685 IAExp + 0.299 -149.0 8.671*** IAgrow + 0.001 -1.455 0.025* IAtrainquality + 0.119** -140.08 -0.366 Sales + 0.000** -0.002 0.001 LTD + 0.000*** -0.002 0.001 StafSal + 0.000 0.394* -0.001 Penx - -0.006* -1.302 0.016*** RD + 0.001*** -0.539 na Audit - -0.078** -0.050 -0.105 Operating inc Na Na -0.002* F-statistic 9.600** 1.295 4.070*** Adj R-squared 0.545 0.040 0.300 Table Notes: UK is a dummy variable set to 1 if UK, 0 otherwise; Europe is a dummary variable set to 1 if Europe, 0 otherwise; financial is a dummy variable set to 1 if financial firm, zero otherwise; Earnings at risk is standard deviation of reported EPS for four years; Cash flow at risk is standard deviation of net cash for four years; Asset-liability at risk is the standard deviation of capital position ratio for last four years ; IA size is ratio of number of IA staff to total number of company staff (survey question 12/question 7); IAqual is ratio of number of IA staff with accounting qualifications over total size of IA (survey question 13i/12); IA exp is ratio of number of experienced IA staff to number of IA staff (survey question 13ii/12); IA growth is difference between number of IA staff in 2005 compared to 2002, divided by number of IA staff on average (survey question 15-question 12/ave); IA quality is self-assessed effectiveness on a likert scale of 1 to 6 (survey question 16); SOX is dummy variable set to 1 if NYSE cross listed and thus subject to SOX, 0 otherwise; financial is dummy variable set to 1 if financial firm, zero otherwise * Significant at 0.10 level ** Significant at 0.05 level ***Significant at 0.01 level