The Impact of Cumulative Career Experience of Internal Control Managers on Firms' Efficiency in Different Information Environments

Inkyung Yoon, Gachon University, College of Business, South Korea
Hansol Lee, Kangwon National University, Department of Accounting, South KoreaFollow
Dongjoon Choi, Chungnam National University, School of Business, South Korea

ORCID

I. Yoon: https://orcid.org/0000-0002-7064-7227

H. Lee: https://orcid.org/0000-0001-6776-410X

D. Choi: https://orcid.org/0000-0002-2464-6039

Keywords

Internal control, Internal control manager, Operational efficiency, Information environment, Data envelopment analysis (DEA)

Abstract

This study investigates the effect of internal control (IC) managers' cumulative career experience on the operational efficiency of Korean listed firms between 2018 and 2020. Building on the premise that managers with extensive experience positively influence ICs and the internal information environment, this study hypothesises that cumulative career experience of an IC manager is also positively associated with a firm's operational efficiency. To empirically assess efficiency, this study applies data envelopment analysis (DEA), a nonparametric technique that evaluates relative efficiency based on multiple input and output measures. The results suggest that IC managers with greater cumulative experience significantly enhance a firm's efficiency. Moreover, this effect is more pronounced in firms operating within weaker accounting information environments, where managerial experience plays a critical role in improving efficiency.

Recommended Citation

Yoon, I., Lee, H., & Choi, D. (2025). The Impact of Cumulative Career Experience of Internal Control Managers on Firms' Efficiency in Different Information Environments. Economic and Business Review, 27(4), 184-198. https://doi.org/10.15458/2335-4216.1360