The Impact of Toxic Leadership on Internal Audit Effectiveness: The Moderating Role of Organizational Silence

Abstract

The study aims to examine the Impact of Toxic Leadership on Internal Audit Effectiveness and the moderating role of Employee Silence. To achieve the study objectives, a descriptive-analytical approach was adopted and used. The study population comprised managers, heads, and employees of internal audit departments in companies listed on the Amman Stock Exchange. For data collection, a questionnaire was developed and distributed electronically; 180 questionnaires were distributed to the sample members. After the collection process, 150 questionnaires were retrieved for analysis, following the exclusion of 30 questionnaires that were either not returned or incomplete. The statistical package for social sciences (SPSS) was used for data analysis. Descriptive statistical methods such as arithmetic means and standard deviations, were employed, alongside simple and multiple regression analysis to examine and test the study’s hypotheses. The results revealed existence of statistically significant impact of toxic leadership with its dimensions (narcissism, authoritarian leadership, self-promotion, poor supervision, and unpredictability) on internal audit effectiveness in the presence of employee silence as a moderating variable. This indicate that the prevalence of a culture of employee silence contributes to exacerbating the negative impact of toxic leadership on internal audit effectiveness. In the light of findings, the study recommends that companies should work to promote a culture of psychological safety within the internal audit function, ensuring that auditors feel secure in raising concerns without fear of retaliation.