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Research On The Defects Of Internal Control Of Listed Companies In Steel Trade

Posted on:2018-08-04Degree:MasterType:Thesis
Country:ChinaCandidate:Z XuFull Text:PDF
GTID:2381330512493995Subject:Accounting
Abstract/Summary:PDF Full Text Request
Steel trade refers to the subsequent production of steel materials,including sales,processing,transportation and distribution and warehousing and other aspects of the business.Since 2013,China’s domestic industry more than the industry capacity of the situation,cement,steel and coal and other industries the most prominent problem,overcapacity,loan and capital tightening to corporate efficiency and the entire economic situation is more severe and worse.By the steel industry overcapacity,commodity prices volatility and other factors,the steel market supply and demand reversal,followed by a substantial depreciation of steel prices,steel trade enterprises a wide range of operating losses,the industry is full of contract disputes and litigation cases,steel trade and repeated negative mortgage loans and other negative news.In 2012,the Shanghai area bear the brunt of the boss fleeing,capital outflows and bankruptcy and other phenomena after another,the regional focus on the outbreak of the steel trade crisis caused the impact of the entire steel industry,leading to steel industry in the negative development of the state significant operational risk and credit risk.The crisis is exposed in the steel industry is the prevalence of internal control deficiencies,reflected in the internal control system to establish the implementation of all aspects.By examining the factors influencing the internal control deficiencies of the listed companies in the steel trade industry and the economic consequences caused by the study,the supervisors,investors and other high-quality internal control and financial information.The information users with dependency have strong practical reference significance.This paper first combs the literature on the internal control of the steel trade industry and the defects of the internal control.It is found that the internal control defects prevalent in the steel trade enterprises are reflected in many aspects,including the imperfection of the internal control system,the implementation of the system,Governance structureconfusion,executive responsibility is not clear and so on.Secondly,the paper reviews the literatures of internal control defects from three aspects,namely,the identification and classification of internal control defects,the determinants of internal control defects and the economic consequences.This part starts from the concept of internal control defects,combines the five elements of internal control and the basic theory of internal control defects,and analyzes the characteristics and defects of the internal control of steel trade industry,and chooses the internal control of steel trade storm Defects frequently from 2011 to 2015 related data for analysis.Based on the previous research,this paper takes the internal control defects of Anhui Wanjiang Logistics.as the research object from 2011 to 2015,combined with theory of internal control defect identification and classification,through combing the case event and discovering the business of company Management,ownership structure,structure of the board of directors and organizational structure are the determinants of the internal control deficiencies,and the internal control deficiencies have a negative impact on the corporate credit rating,capital cost,performance,stock price and audit fees to a certain extent.In this paper,Wanjiang logistics as an example,the results show thatthe company operating complex,the number of subsidiaries,organizational structure changes frequently,company’s equity structure and organizational structure is unreasonable is the cause of internal control defects.The economic consequences of internal control deficiencies are manifested in many ways,with lower corporate credit ratings,rising capital costs,lower performance and share prices,and increased audit fees.Based on the results of case analysis,this paper puts forward suggestions to solve the defects of internal control from the perspective of internal control factors.The purpose of this paper is to summarize the listed companies of China’s steel trade industry by analyzing the determinants and economic consequences of the internal control deficiencies Internal Control Defects.
Keywords/Search Tags:Steel Trade Industry, Internal Control Deficiencies, Internal Control Effectiveness, Economic Consequences
PDF Full Text Request
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