International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 8 (August 2023), Pages: 112-120

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 Original Research Paper

Spillover effects of internal audit effectiveness among commercial banks

 Author(s): 

 Hanh Hoang Thanh *, Dung Ngo Tien

 Affiliation(s):

 Accounting Auditing Department, Academy of Policy and Development, Hanoi, Vietnam

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-7034-0105

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.08.013

 Abstract:

This study explores the multifaceted landscape of factors influencing the effectiveness of internal audit within the context of Vietnamese commercial banks. While a plethora of literature exists on the determinants of internal audit effectiveness, an unexplored dimension is the examination of spillover effects amongst companies operating within the same industry. This research addresses this gap by investigating not only the factors that impact the effectiveness of internal audit in Vietnamese commercial banks but also the inter-bank spillover effects of such effectiveness. Utilizing data obtained from 24 commercial banks listed on the Vietnam Stock Exchange and Vietnam Upcom (The Unlisted Public Company Market), we employ a Bayesian spatial regression model (a robust analytical tool) to conduct comprehensive analyses of the interrelationships and co-movements of internal audit effectiveness across these banks. Our findings offer empirical support for the positive effects of key determinants, namely, the "Competence of the IA Department," "IA Independence," and "Management Training Ground," on the effectiveness of internal audit in Vietnamese commercial banks. Notably, our results also validate the significant positive inter-bank spillover effect of internal audit effectiveness. This underscores the importance for banks to collectively prioritize measures aimed at enhancing the quality of internal audit, including the establishment of a joint internal audit association and the organization of collaborative training initiatives for internal audit personnel.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Internal audit, Effectiveness, Commercial banks, Spillover effects

 Article History: Received 16 January 2023, Received in revised form 11 June 2023, Accepted 10 July 2023

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Thanh HH and Tien DN (2023). Spillover effects of internal audit effectiveness among commercial banks. International Journal of Advanced and Applied Sciences, 10(8): 112-120

 Permanent Link to this page

 Figures

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 Tables

 Table 1 Table 2 Table 3

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