Page 117 - 臺大管理論叢第33卷第1期

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

positive moderator effect of governance quality for logistics enterprises. Our empirical
results also support that the impact of corporate governance and internal control persists
for over one period, and both corporate governance and internal control have lag effects
on logistics enterprise performance; however, the lag effect of internal control is more

significant than corporate governance. Besides, our result has proven the influence of
corporate governance and internal control on performance has heterogeneity in companies
with different shareholding structures. Specifically, private logistics companies perform

better than state-owned logistics companies when concerning the roles of corporate
governance and internal control playing in boosting financial performance. We extend our
research and further perform several robustness tests; the conclusions are still valid.

4. Research Limitations/Implications

The research has shown that the association between corporate governance quality
and the performance of logistics enterprises is significantly positive; the positive

moderating role of corporate governance quality can amplify the effect of internal control
effectiveness on performance; the lag effect of corporate governance on performance is
not as evident as the internal control. Due to its direct and immediate impact, increasing
the corporate governance quality can be considered one primary approach to improve
the logistics enterprise performance. Our results imply that for the logistics enterprises,

enhancing corporate governance would be the first attempt following the improvement of
internal control systems.
To strengthen its corporate governance quality, a logistics enterprise could reduce the
number of directors without remuneration; add more independent directors; and optimize

equity incentives for managers.
The logistics enterprises should also strive to implement rigid internal control
procedures and keep the evaluation process transparent for operation efficiency. A well-
designed internal control system can assure compliance and avoid financial fraud.

Additionally, as mentioned above, the impact of corporate governance and internal
control on performance has shown heterogeneity in logistics enterprises with the different
ownership structures. We suggest that the state-owned logistics enterprises establish more
rigorous corporate governance standards and a tighter internal control system.

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