Internal Control System as a Factor of Reliability in Management Reporting Under Conditions of Economic Turbulence

ENG: This paper examines the role of internal control systems (ICS) in ensuring the reliability of management reporting under conditions of economic turbulence. Using a panel dataset of 52 Ukrainian enterprises over the period 2020–2024, the research applies fixed-effects and dynamic panel (System GMM) models to evaluate both the direct and moderating effects of internal control and macroeconomic instability. The results indicate that internal control systems have a significant positive impact on reporting reliability, while economic turbulence negatively affects the quality of management information. Importantly, the interaction between internal control and turbulence reveals a buffering effect, demonstrating that mature control systems partially mitigate the adverse impact of external shocks. Firm size and profitability further enhance reporting reliability, whereas financial leverage increases the risk of distortions. The study contributes to the literature by providing empirical evidence on the stabilizing role of internal control systems in volatile environments and offers practical implications for strengthening risk-oriented governance and digital control mechanisms to support resilient decision-making.