Impact of Internal Audit on Nine Principles of Good Corporate Governance Mediated by Organizational Transparency: Evidence from Public Listed Companies in Oman

This study investigates the impact of internal audit functions on the nine principles of good corporate governance identified by Diligent within public listed companies in Oman. The research examines the mediating role of organizational transparency and its direct impact on these governance principles, while demonstrating why these nine principles offer a superior framework compared to existing governance codes. Methodology: A descriptive cross-sectional survey design was employed to collect data from all organizations listed on the Muscat Stock Exchange. Data was analyzed using PLS-SEM and SPSS. Internal audit served as the independent variable, the nine principles of good corporate governance as the dependent variable, and organizational transparency as the mediating variable. Findings: The results reveal a significant positive relationship between internal audit and organizational transparency, and between organizational transparency and the nine principles of corporate governance. Importantly, organizational transparency fully mediates the relationship between internal audit and good corporate governance, while the direct relationship between internal audit and governance principles is not statistically significant. Practical Implications: Omani as well as global Organizations can implement the nine principles of corporate governance through comprehensive policies that eliminate corruption, increase inclusivity, and encourage diverse thinking. Originality: This research contributes to existing knowledge by demonstrating that internal audit functions impact good corporate governance primarily through organizational transparency. To our knowledge, no previous study has examined the nine principles of corporate governance in relation to internal audit function effectiveness, nor has organizational transparency been studied as a mediating variable in this context.