The Research Of Internal Control Based On The Corporate Governance Perspective

Internal Control, as an important contract arrangement, plays a very important role to guard against risk effectively, to contribute to realize the management goal, and to promote the management efficiency. In the past, we always look for the reason from the procedure of mutual check, mutual supervision, and mutual double check of internal control system when the internal control system does not work well, and not fully realize the problems of internal control failure which were caused by the disjunction of internal control and corporate governance structure and inner defect of corporate governance structure. In fact, a hard, well-organized internal control system couldn't attain the predicted control results if there is not a perfect corporate governance structure and the good joint with internal control. As a result, internal control must combine with corporate governance structure to carry out internal control effectively.This article discusses how the corporate governance structure influences the internal control from the corporate governance structure view. Firstly, the relationship between corporate governance structure and internal control is discussed from the economic angle; Secondly, the article elaborates on the influences that were made by ownership structure, board director and supervisor board characteristics; Thirdly, based on the theoretic analyses, via samples of year 2003 to year 2005, this article analyses the effect caused by the corporate governance structure of state-owned holding listed companies through principle factors and multiple linear regression analysis. The empirical research indicates the results as follows: first stockholders' stock rate is negatively correlated with internal control efficiency;the establishment of Audit Committee can improve the internal control efficiency on some extent;direct salary excitation prompts top managers to work well, yet stock rights don not stimulate top managers and general manager to do well;although other factors represent correlated relationship, the samples are not passedsignificant test. According to the results above, the article suggests some advice which contributes to improve the internal control system of enterprise through optimizing ownership structure, building construction of board director and supervisors board, ameliorating information disclosure of internal control.