Page 115 - 臺大管理論叢第33卷第1期

NTU Management Review Vol. 33 No. 1 Apr. 2023

As for the listed logistics companies, we believe that if the complete accounting
system, the authenticity of financial information, moderate delegation with corresponding
supervision and sufficient information disclosure all built up, not only would help the
companies enhance corporate governance level, but also would benefit the invisible

management cost savings. In other words, the optimization of governance structure
and the improvement of internal control quality could be an effective way to boost the
performance of logistics enterprises in China.

2. Design/Methodology/Approach

We make the empirical analysis on 92 publicly listed Chinese enterprises in the
logistics industry to explore the impact of governance quality and internal control

effectiveness on their performance. Built around literature review, we develop five
hypotheses.
Firstly, based on the theories of the legal system, CEO behavior consistency and
management incentive, we propose Hypothesis 1: the corporate governance quality of a

logistics company is positively associated with its financial performance.
Secondly, based on the literature analysis, a sound internal control system can
guarantee accounting conservatism and help curb managers’ over-consumption behavior.
Thus, we propose Hypothesis 2: a logistics company’s higher internal control effectiveness

results in a better financial performance.
Thirdly, in view of the interaction between corporate governance and internal
control, we would explore the moderating effect of corporate governance quality and
propose Hypothesis 3: the higher the corporate governance quality of a logistics company,

the higher the positive impact of internal control effectiveness on corporate financial
performance.
Fourthly, due to the complexity of enterprise organizational structure, the effect
of corporate governance and internal control adjustments can last for more than one

period and help make continuous improvements over performance. So, we hypothesize
that the impacts or benefits of both corporate governance and internal control may have
contemporary and time-lag effects. Meanwhile, the corporate governance system is
designed by the board and would be implemented by top-level managers to lower-level

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