Mai Phuong Dang

Type of the article: Research Article

In contemporary corporate governance, rigorous expenditure control is essential for financial stability and for mitigating agency costs. This article investigates the influence of financial management information system functional maturity and internal audit effectiveness on expenditure control efficiency and examines the mediating role of financial information quality in Vietnamese listed companies. A quantitative approach was employed using partial least squares structural equation modeling (PLS-SEM) to analyze data collected from 258 respondents, each representing a distinct listed enterprise during the first half of 2025. The results provide quantitative evidence supporting all hypotheses. Specifically, financial management information system maturity positively influences financial information quality (β = 0.400) and expenditure control efficiency (β = 0.349). Internal audit effectiveness also positively influences information quality (β = 0.265) and control efficiency (β = 0.208). Furthermore, financial information quality directly enhances control efficiency (β = 0.399) and significantly mediates the relationships between system maturity (indirect effect = 0.160) and internal audit effectiveness (indirect effect = 0.106) on expenditure control. The model explains 46.8% of the variance in expenditure control efficiency. These findings conclude that technological infrastructure and independent oversight optimize governance performance primarily through producing highly reliable financial data, offering vital insights for executives to standardize internal control protocols in volatile markets.