Internal Control Systems and Private Hospitals’ Performance: Innovation, Earnings Management, and Transformational Leadership
Subject Areas : عمومى
Ali Beenaeyan
1
,
Abaas Ramazanzadeh Zeydi
2
,
Gholamreza Rezaei
3
,
Ali Zabihi
4
1 - PhD. Student, Department of Accounting, Sar.C., Islamic Azad University, Sari, Iran
2 - Assistant Professor, Department of Accounting, Sari Branch, Islamic Azad
3 - Assistant Professor, Department of Accounting, University of Sistan and Baluchestan, Zahedan, Iran
4 - Assistant Professor, Department of Accounting, Sar.C., Islamic Azad University, Sari, Iran
Keywords: Internal Control System, Performance, Earnings Management, Private Hospitals, Transformational Leadership,
Abstract :
The purpose of this study is to evaluate the impact of internal control systems on private hospitals’ organizational performance via considering the role of earnings management, innovation and transformational leadership. The proposed hypotheses were tested using PLS-SEM in SmartPLS-3 with survey data from 333 of private hospitals’ financial managers and accounting staff in Iran. The results show that the internal control systems of have a positive effect on performance, real and accruals earnings management, and the innovation intensity. Also, accruals earnings management has a positive effect on the hospitals’ performance and mediates the relationship between internal control systems and performance, but real earnings management and innovation do not have such an effect. In addition, transformational leadership does not have the power to moderate the relationship between internal control systems and hospitals’ performance. The study’s findings show usefulness of the internal control systems in order to the adoption, designing and implementation of proactive internal control systems to enhance operational efficiency, effectiveness and competitive advantage in private hospitals