Based on 3,775 firm-year observations from 2009 to 2013 using publicly available disclosure data for Korean listed firms, this study examines whether and how firm-level governance characteristics are associated with investment in internal auditing proxied by compensation and the number of statutory internal auditors.,The authors investigate the association between governance characteristics and investment in internal auditing proxied by compensation and the number of statutory internal auditors.,The authors find that firms with greater ownership of the largest shareholders and with a higher proportion of outside directors invest more in internal auditing. These results indicate that firms with higher incentive and demand for monitoring are more likely to invest more in internal auditing. The authors further find that the positive effect of the largest shareholder ownership (board independence) on investment in internal auditing is attenuated in firms with greater board independence (ownership of the largest shareholders) suggesting that the complementary effect of the two governance mechanisms associated with internal auditing weakens as they function simultaneously.,The results provide regulators and investors with a clear picture of the governance characteristics of firms associated with investment in internal auditing. The results imply that both the largest shareholders and the outside board of directors play a significant role in resource allocation in internal auditing within a firm. The effect of allocation, however, can be attenuated contingent upon the combined characteristics of governance mechanisms.,Using large amounts of public archival data, this study adds to the extant literature on firm characteristics associated with investment in internal auditing. This study also contributes to the literature by expanding the scope of research on executive compensation to the locus of statutory internal auditors.

中文翻译：

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投资于内部审计和治理特征

基于2009年至2013年使用韩国上市公司的公开披露数据进行的3,775个公司年度观察，本研究考察了公司层级的治理特征是否与薪酬补偿以及法定内部审计师数量相关联，以及如何与内部审计投资相关联。 ，作者调查了以薪酬为代表的内部审计中公司治理特征与投资之间的联系以及法定内部审计师的数量。作者发现，拥有最大股东并拥有较高外部董事比例的公司对内部审计的投资更多审核。这些结果表明，具有较高激励和监测需求的公司更有可能在内部审计方面进行更多投资。作者进一步发现，在具有更大董事会独立性（最大股东所有权）的公司中，最大股东所有权（董事会独立性）对内部审计投资的积极作用减弱了，这表明与内部审计相关的两种治理机制的互补效应审计工作会同时发挥作用，因此削弱。结果为监管机构和投资者提供了与内部审计投资相关的公司治理特征的清晰画面。结果表明，最大的股东和外部董事会在公司内部审计中的资源分配中都起着重要作用。但是，分配的影响可以根据治理机制的综合特征而减弱。利用大量的公共档案数据，本研究增加了与内部审计投资相关的公司特征的现有文献。这项研究还通过将执行人员薪酬的研究范围扩大到法定内部审计师的所在地为文献提供了帮助。