The effect of internal control on asset misappropriation: The case of Vietnam

This article [written by Manh Dung Tran, Thi Thu Ha Le] – published in Business and Economic Horizons, Volume 14(4), 2018.

Title: The effect of internal control on asset misappropriation: The case of Vietnam

Abstract: Asset misappropriation is a kind of fraud that may cause severe damages to the businesses. The internal control system is expected to provide a reasonable assurance for the management of the businesses in preventing and detecting frauds, including asset misappropriation. The study is conducted to examine the effect of internal control system on asset misappropriation in Vietnamese firms. Based on questionnaires collected from internal auditors, accountants and department managers in Vietnamese firms, the study assess the impact of COSO five internal control components on the popularity of asset misappropriation in the firms. The results show that of the five components, control environment presents the strongest impact, followed by control activities, information and communication in respective order. Determinants with the mildest impact are risk assessment and monitoring of control. Based on the findings, it is important that the management of the firms improve the internal controls to effectively reduce the chance of fraud in their firms.

Keywords: Asset misappropriation, fraud control, internal control, Vietnam

Citation: Tran, Manh Dung; Le, Thi Thu Ha (2018). “The effect of internal control on asset misappropriation: The case of Vietnam”, Business and Economic Horizons, Vol.14, Issue4, pp.941-953. DOI: http://dx.doi.org/10.15208/beh.2018.64

 

Assessing the financial security of the engineering enterprises as preconditions of application of anti-crisis management: practical aspect

This article [written by Oleksandr Sylkin, Andriy Shtangret, Olha Ogirko, Alexander Melnikov] – published in Business and Economic Horizons, Volume 14(4), 2018.

Title: Assessing the financial security of the engineering enterprises as preconditions of application of anti-crisis management: practical aspect

Abstract: Today, engineering enterprises in Ukraine are experiencing poor development. The crisis development of many domestic engineering enterprises is reinforced by both internal and external factors, so it is critical to develop new methodologies to comprehensively estimate their level of financial security, thus serving as the information basis for the application of anti-crisis management. The objective of the study is to develop a model to assess the financial security of engineering enterprises. The subjects of the study are the activities of the top ten engineering enterprises in Ukraine for the period 2013-2017. The purpose of our research is to form a methodical approach to assess the financial security of engineering enterprises, which would become the basis for applying a certain type of anti-crisis management and encouragement in domestic engineering enterprises. The results of the study made it possible to form and implement a model to assess financial security, which will help to establish the need to apply anti-crisis management in an enterprise.

Keywords: Financial security; engineering enterprises; anti-crisis management; assessing the financial security of the enterprise

Citation: Sylkin, Oleksandr; Shtangret, Andriy; Ogirko, Olha; Melnikov, Alexander (2018). “Assessing the financial security of the engineering enterprises as preconditions of application of anti-crisis management: practical aspect”, Business and Economic Horizons, Vol.14, Issue4, pp.926-940. DOI: http://dx.doi.org/10.15208/beh.2018.63

 

Efficiency as a new ideology of trust-building corporate governance

This article [written by Maryna Brychko, Andrii Semenog] – published in Business and Economic Horizons, Volume 14(4), 2018.

Title: Efficiency as a new ideology of trust-building corporate governance

Abstract: This paper seeks to examine the mainstream theories of corporate governance in an attempt to suggest that efficient corporate governance has no logical claim to “objectivity” and not always contribute to trust-building. Therefore, efficiency as the corporate governance goal is political and ideological plan of actions based on a set of controversial conceptual and empirical assumptions, which constitute norms and prescriptions. In addition, mechanisms of how these ideologies are supported and reproduced are shown. The paper provides the basis and seeks to persuade policymakers and commentators for new interdisciplinary research into the behavioral and political economy of corporate governance.

Keywords: Corporate governance, good corporate governance, trust-building strategy, efficiency, shareholder value, ideology, objective truth rule

Citation: Brychko, Maryna; Semenog, Andrii (2018).”Efficiency as a new ideology of trust-building corporate governance”, Business and Economic Horizons, Vol.14, Issue4, pp.913-925.
DOI: http://dx.doi.org/10.15208/beh.2018.62