Determinants of Internal Control System Effectiveness: Evidence from Greek Listed Companies

This paper examines the interrelationship between Corporate Governance (CG), Internal Control System (ICS), and Organizational Performance (OP), with a particular focus on the effectiveness of the ICS in relation to the quality of its components. Drawing on recent literature and empirical evidence, the study demonstrates that strong governance frameworks—characterized by board independence, effective audit committees, and proactive risk management—are closely linked to robust internal control environments. Together, these mechanisms enhance transparency, reduce risks, and foster stakeholder trust. The analysis further highlights that governance and internal control are evolving beyond compliance, increasingly serving as strategic levers for creating sustainable value. The findings underscore important implications for practitioners and policymakers. Organizations are encouraged to strengthen internal controls, invest in audit and risk management capacity, and embed ethical and sustainability considerations into governance structures. Regulators, in turn, should support frameworks that promote both accountability and innovation. Overall, the study contributes to a deeper understanding of how governance and control mechanisms can secure organizational resilience and drive long-term performance in a rapidly changing business environment.