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Do internal controls improve operating efficiency of universities?

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  • Rong-Ruey Duh

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  • Kuo-Tay Chen
  • Ruey-Ching Lin
  • Li-Chun Kuo

Abstract

Improving operating efficiency is one objective of internal controls (IC). This paper investigates the relationship between IC implementation and operating efficiency of universities. Using data from questionnaire survey and from the field, this study measures IC implementation and applies data envelopment analysis to estimate operating efficiency of 99 universities in Taiwan. The OLS regression results indicate that IC implementation has an insignificant association with teaching-related efficiency, but has a negative and significant association with research-related efficiency. Dividing the sample into public and private universities, the analysis indicates that for public universities, IC implementation has no significant association with any of the two measures of efficiency. But, for private universities, there is a positive and significant association between IC implementation and teaching-related efficiency. The association between IC implementation and research-related efficiency is negative and significant. Copyright Springer Science+Business Media, LLC 2014

Suggested Citation

  • Rong-Ruey Duh & Kuo-Tay Chen & Ruey-Ching Lin & Li-Chun Kuo, 2014. "Do internal controls improve operating efficiency of universities?," Annals of Operations Research, Springer, vol. 221(1), pages 173-195, October.
  • Handle: RePEc:spr:annopr:v:221:y:2014:i:1:p:173-195:10.1007/s10479-011-0875-6
    DOI: 10.1007/s10479-011-0875-6
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    5. Carolyn–Dung T. T. Tran & Renato A. Villano, 2017. "Input Rigidities and Performance of Vietnamese Universities," Asian Economic Journal, East Asian Economic Association, vol. 31(3), pages 253-273, September.

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