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Implications of internal control effectiveness in corporate governance
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Vishwa Hamendra Prasad 
, Vishal Sharma, Shoma Prakash , Arun Lata, Moreen Maharaj
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
Due to the growing significance of corporate governance as a key internal control mechanism, many countries now find it necessary to implement and strengthen such governance systems. This study draws on established theoretical frameworks to formulate propositions and outline a future research agenda concerning the impact of internal control on corporate governance. Specifically, it leverages institutional theory alongside Marx’s circuit of industrial capital to construct theoretically grounded and defensible propositions. Internal control effectiveness has been found to mediate the relationship between governance mechanisms and organizational performance, underscoring the intertwined nature of governance, risk management, and business outcomes (Ahmad & Muslim, 2024). The paper also identifies key variables and examines challenges related to their operationalization. We claim that a positive relationship between internal control with standards and corporate governance could be used to assess internal control performance.
Keywords: Internal Control, Corporate Governance, Organizational Performance
Authors’ individual contribution: Conceptualization — V.H.P.; Methodology — V.H.P.; Investigation — V.H.P., V.S., S.P., A.L., and M.M.; Resources — V.H.P.; Writing — Original Draft — V.H.P. and V.S.; Writing — Review & Editing — V.H.P., V.S., S.P., A.L., and M.M.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: G11, G12, G14, G15
Received: 10.09.2025
Revised: 11.11.2025; 24.11.2025; 05.12.2025
Accepted: 12.12.2025
Published online: 16.12.2025
How to cite this paper: Prasad, V. H., Sharma, V., Prakash, S., Lata, A., & Maharaj, M. (2025). Implications of internal control effectiveness in corporate governance. Corporate Ownership & Control, 22(4), 109–122. https://doi.org/10.22495/cocv22i4art10
