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Do family companies invest more in internal audit function (IAF) than non-family companies?

Adel Ali Al-Qadasi (Department of Accounting, Shaqra University, Al-Dawadmi, Saudi Arabia) (Department of Accounting, Hodeidah University, Hodeidah, Yemen)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 2 January 2023




Motivated by the growing interest of governance regulators and researchers on internal audit function (IAF), this study examines the influence of family ownership on the levels of investment in IAF.


A sample of Malaysian listed companies for the period 2009 to 2016 is used. To test our hypothesis, the authors use pooled panel data regression based on two-way cluster-robust standard errors (firm and year).


The findings show that family ownership is negatively related to investment in IAF; in particular, investment in IAF is lower for family companies than non-family companies.


This study contributes to existing knowledge of IAF, and it provides significant insights for regulators and managers into the variation in governance structures between family and non-family companies, particularly in emerging markets in which substantial family ownership is common.



Ali Al-Qadasi, A. (2023), "Do family companies invest more in internal audit function (IAF) than non-family companies?", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print.



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