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on Accounting and Auditing |
| By: | Mehdi Araberami (ESCA Ecole de Management, Morocco); Azzeddine Allioui (ESCA Ecole de Management, Morocco) |
| Abstract: | This comprehensive study delves into the dynamic interplay between internal control, audit, and digitalization within the context of Royal Air Maroc (RAM). Drawing from both literature insights and real-world experiences, the discussion emphasizes the pivotal role of effective internal control and audit practices in enhancing a company's performance. The literature review underscores the significance of employee involvement, clear communication, and the role of digitalization in modernizing control procedures. In parallel, the internship experience at RAM aligns with these principles, highlighting the importance of well-trained staff, benchmarking, and the willingness to adapt. The discussion further explores the challenges and opportunities presented by the digitalization of internal control, emphasizing the need for a strategic approach to gain buy-in from operational teams. The results accentuate the importance of internal control in preventing errors and fraud, making a compelling case for a continuous improvement mindset. The report advocates for effective communication to bridge the understanding gap between departments, underscoring the symbiotic relationship between audit and internal control. Additionally, the role of digitalization, encompassing technologies like Robotic Process Automation (RPA) and data mining, is emphasized as a key enabler for optimal processes and enhanced performance. |
| Keywords: | Internal control, Audit, Digitalization, Financial performance, Employee involvement, Continuous improvement, Robotic Process Automation, Data mining, Governance Risk and Compliance, Sustainable Development |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0404 |
| By: | Pikka, Aleksi |
| Abstract: | Abstract This paper studies the productivity effects of intangible assets using 9th vintage of the CompNet dataset. Descriptive work shows that there is dispersion in usage of intangibles; some firms invest heavily into intangible assets and many firms do not invest at all. In addition, preliminary evidence, using the joint distributions provided by CompNet, implies that intangible assets increase the productivity of the firms that already belong to the 90th productivity percentile. Furthermore, I estimate the output elasticity of intangible assets by a Cobb Douglas production function using data at the 2-digit industry (NACE rev 2) level of aggregation and find output elasticity of intangibles to be approximately between 0.08–0.10. A special emphasis is placed on development of intangibles in Finland. I find that concentration in intangibles, measured by the Herfindahl-Hirschman index, has increased in the past few years and that intangible assets are concentrated in ICT and manufacturing macro-sectors. In addition, I estimate a Cobb Douglas production function using only data from Finland and find that while output elasticity on intangible assets is approximately 0.05, the coefficient is not statistically significant, and hence, the evidence is inconclusive. |
| Keywords: | Intangible capital, Productivity |
| JEL: | E22 J24 O52 |
| Date: | 2024–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:119 |
| By: | Anastasia Litina (Department of Economics, University of Macedonia); Luca J. Uberti (Department of Economics (DEMS) at the University of Milano-Bicocca.); Skerdilajda Zanaj (DEM, University of Luxembourg) |
| Abstract: | In an era where gender norms vary widely and quite frequently hint to gender inequality in the labor market, previous studies have shown that higher gender diversity is associated with better economic outcomes. Using a novel dataset that provides granular data at the firm level, we test this hypothesis in the context of gold mining companies. We concentrate on a relatively overlooked aspect, namely cost efficiency, and study whether a larger number of women directors is associated with more efficient use of a company’s resources. We use a stochastic frontier methodology to estimate the cost-efficiency of gold mines for a representative sample of global mining companies. Using fixed-effects and instrumental-variable regressions, we find that an increase in female representation on the parent company’s board translates into significant efficiency gains for the mining operations controlled by the parent company. Specifically, a one standard-deviation increase in the share of female directors increases cost-efficiency by 12 percent of a standard deviation of our main efficiency index. This finding is robust to using alternative instruments for female representation, alternative stochastic-frontier methodologies, and different specifications of the main estimating equation. Interestingly, the efficiency gains induced by female directors do not necessarily improve the overall performance of the company as measured by accounting profitability. Yet, cost efficiency is associated with higher cost-sustainability and long-term viability of a firm, thereby rendering it more resilient. This hints that the underlying mechanism is consistent with evidence that suggests that women directors exert a higher monitoring and audit effort than their male counterparts. Our results provide additional evidence of a distinctly female style in corporate leadership and shed light to different aspects of a firm’s productivity. Understanding differences in styles of leadership, allows policy makers to implement more inclusive policies in the labor market and firms to endorse diversity in leadership. This ultimately can lead to more inclusive norms in the labor market. |
| Keywords: | Gender; Boards of directors; Cost efficiency; Stochastic Frontier Analysis; Mining |
| JEL: | D22 D24 G39 M14 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mcd:mcddps:2024_09 |