The Role of Internal Control in Enhancing Corporate Governance: Evidence from Jordan

摘要

This study aimed to examine the role of internal control elements: control environment, risk assessment, control activities, communication and information, and monitoring, in enhancing the corporate governance pillars, which are: accountability, fairness, responsibility, and transparency. The study also seeks to determine the extent to which this commitment contributes to strengthening these pillars in the context of Jordanian insurance companies. In order to achieve the objectives of this study, a questionnaire was developed and distributed to a sample of non-executive members of the board of directors, financial managers, heads of accounting departments and internal auditors of 27 Jordanian insurance companies. The total number of questionnaires distributed was 162 questionnaires, of which 123 questionnaires were returned and were valid for data analysis, with a response rate of approximately 76%. Based on the results of the statistical analysis, the study indicated that the commitment to all elements of internal control contributes to strengthening the corporate governance pillars at a high degree. The study also revealed that the commitment to each element of internal control contribute to strengthening the pillars of corporate governance at a high degree. These results show that the internal control has a significant role in enhancing the corporate governance pillars in Jordanian insurance companies, and the successes of corporate governance requires compliance with all elements of internal control.