Association Between Internal Control and Financial Performance in Blue Chips Companies of Bangladesh

The aim of this paper is to examine internal control of Bangladeshi listed companies whether the companies follow all the five components of internal control as per suggested by COSO. The paper has aim to show the relationship between internal control and financial performance of those sample companies. The methodology of this paper is quantitative. Out of 655 listed companies of Dhaka Stock Exchange, 30 blue chips companies (DSE 30 index) are the sample size. These blue chips companies included all sectors excluding mutual funds, debentures, and bonds. Data has been collected for the recent year 2020-2021. Here, hypothesis has been developed and econometrics model (OSL) has been used to find out result.The analysis found that nine out of thirty companies follow all the components suggested by COSO. It has showed the positive significant relationship between profit margin and internal control. The return on asset, return on equity and earning per share are unrelated to internal control. The findings have some practical implications. It reflects the internal control system followed by the companies whether it is effective or not. Most importantly, it will be helpful for the decision makers to improve the internal control systems if they have any deficiency.In Bangladesh, there are few papers on internal control and financial performance of the listed companies. Most of them are on only banking sector. Other sectors were not properly focused for research purpose. Again, there is no article on internal control which has been focused on index of Dhaka Stock Exchange (DSE30). This research gap has been mitigated here.