Researh On The Influence Of Internal Control On The Value Of Listed Companies In China

The internal control of listed companies,especially state-owned companies,is not only an important part of corporate governance,but also an organic part of the modernization of national governance system and governance capacity.In recent years,on the one hand,the internal control system of China's listed companies has been gradually improved and have ensured the continuous improvement of the company's value under comprehensively governing the party with strict discipline;on the other hand,the fact that the executives of listed companies often have committing crimes,encroaching on the company's interests,frequently making financial scandals,seriously affecting the company's reputation and market value.So what kind of internal control system and operation mechanism should we establish? How does internal control affect the value of the company? Or what kind of transmission mechanism exists between internal control and corporate value? It is of great theoretical and practical significance not only for the governance of listed companies,but also for the modernization of national governance system and governance capacity.Internal control which arises from the incompleteness of enterprise contract is inevitable.As an internal mechanism arrangement,internal control has its own effect and operation mechanism.It must be organically combined with all elements of the company,its operation mechanism can be smooth,and its own effect can be fully exerted.In the process of "natural selection" and "adaptive learning",It rewards,supports and strengthens the adaptability to satisfaction.Meanwhile,it punishs,stops and eliminates the adaptability to dissatisfaction.Then,Internal control is therefore seen as an important cornerstone in corporate governance,risk control and management efficiency for preventing the failure and guiding the development of the company.Ultimately,There may be very important impact on the value of the company.Thus,It is complex and implicit for the relationship between internal control and corporate value,Thus it is not a simple linear or nonlinear in statistical significance.It is based on the analysis of theoretical,current situation,empirical,comparative and strategies in this paper.First of all,It discusses the theoretical framework of internal control and corporate value,which not only expounds the essence and ontology of internal control and corporate value,but also constructs the theoretical mechanism of internal control influencing corporate value through corporate governance,risk control and management efficiency;Secondly,it is necessary to take certain indicators for evaluation and statistical in order to accurately and quantitatively describe the internal control and corporate value of listed companies before the analysis of econometric model.It not only collects the indicators of the internal control,corporate governance,risk management,management efficiency and corporate value.Moreover,it makes factor analysis on internal control,corporate governance and corporate value.Thus,It lays the foundation for the empirical analysis of this paper.Thirdly,It is an empirical analysis.In order to confirm the theoretical hypothesis that internal control affecting corporate value through three mechanisms of corporate governance,risk management and management efficiency,It selects the data of listed companies from 2008 to 2017,uses structural equation model,and uses amos25.0 software for conducting an empirical analysis in independently three chapters.From the empirical conclusion,they are in line with reality.Fourthly,In order to make up for the shortcomings,it not only collects and summarizes the advanced experience of foreign listed companies,but also analyzes the causes from the aspects of ideology,system,culture and talents for internal control of Chinese listed companies.Finally,according to the theoretical analysis and empirical conclusion,it puts forward suggestions and measures to improve corporate governance,risk control and management efficiency through internal control.This paper is different from similar studies at home and abroad,and the innovative conclusions are as follows: internal control promotes the establishment of internal "Pan-governance" structure,that is,it promotes the establishment of check-and-balances among the top and the bottom and the same level within the company,which makes the company Pareto optimal state;there is heterogeneity of indirect effect between internal control and the value,that is,the functions of internal control are different among corporate governance,risk control and management efficiency.In particular,it should greatly improve the role of on corporate governance and stock risk by internal control.There is a U-shaped non-linear relationship between internal control and corporate value,that is,internal control first makes corporate value decline and then rise,and effective internal control can finally achieve maximum value.This paper puts forward the concept of "Pan-governance",which provides a useful reference for the construction of internal control of Listed Companies in China.