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Internal control level and enterprise strategic aggressiveness

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  • Cheng, Zhiyuan

Abstract

This paper investigates the impact of internal control quality on firm strategic aggressiveness based on China's stock markets. By constructing a discrete variable to measure firm strategic aggressiveness and adopting the Dibo Internal Control Index as a proxy for internal control quality, an empirical analysis is conducted. The results indicate that internal control quality has a significant positive effect on firm strategic aggressiveness, meaning that improvements in internal control lead to more aggressive strategies adopted by firms. Further mediation analysis reveals that investment efficiency plays a crucial role in the process through which internal control quality influences firm strategic aggressiveness. Additionally, heterogeneity analysis demonstrates that, compared to state-owned enterprises, the positive impact of internal control quality on strategic aggressiveness is more pronounced in non-state-owned enterprises.

Suggested Citation

  • Cheng, Zhiyuan, 2025. "Internal control level and enterprise strategic aggressiveness," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000947
    DOI: 10.1016/j.frl.2025.106829
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    Cited by:

    1. Xinhong WANG & Taiwen KONG, 2025. "Internal control quality, dynamic capabilities, and executive team diversity: mechanisms behind corporate digital transformation," Future Business Journal, Springer, vol. 11(1), pages 1-20, December.
    2. Miao, Yong & Wan, Ting, 2025. "How does financial robustness enhance the product market competitiveness of new retail enterprises? The moderating role of external supervision," Finance Research Letters, Elsevier, vol. 85(PC).
    3. Zhang, Tingting & Li, Jinke & Huang, Hui, 2026. "Government accounting supervision and corporate productivity: Evidence from market-oriented regulatory reform," International Review of Financial Analysis, Elsevier, vol. 109(C).

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