Research On The Interaction Between State-owned Enterprises' Corporate Governance And Internal Control

Corporate governance and internal control wasn't a fresh topic already, both of domestic and foreign research. It was a long-standing subject, and it has profound development history. The economical world also already started to study the relation between the two, and has obtained some preliminary achievements. But, the literature about corporate governance and internal control is few. Currently, There are mainly two kinds of views on the relations between corporate governance and internal control: one of that is"the system-environment theory"; another states that the relationship should be interactive, this viewpoint is novel and unique. The author approves of the second one.The firm is a nexus of contracts. As two kinds of systematic arrangements inside the contractual entity, the foundation of the interactivity between corporate governance and internal control mainly embodies in five aspects: the same theories foundation, crossed contents, the common carrier, attach importance to people oriented, obey in the business goal. As the effective installing of residual control rights is not only the key to comprehend the governance structure, but also the key to implement the internal control, it is certainly the logic point of departure of the interaction. The governance mechanisms'unceasing completeness can externalize the internal control, guarantee the high grade accounting information. On the other hand, the unceasing perfection of internal control mechanisms can strengthen the completeness of the contracts, In turn, the internal control unceasing consummation is advantageous in keeping balance between the owner's and operator's authority, is advantageous in solving the question which is brought by high degree of concentration on stockholder's rights and the owner's vacancy, is advantageous in exercising the domination effectively by the board of directors, is advantageous in safeguarding the other counterparts'benefit.In state-owned enterprise's government reform practice, the corporate governance and internal control both have the serious problems and flaws. The author believe that, relation between the corporate governance and internal control is close, inalienable. We can't govern on the company only, also can't pay attention to the single internal control. We should study the corporate governance and internal control together. Only then like this, we can clear off the subtle relations between them and form benign interaction. We can effectively solve the problems and the flaws which exist between them, thus impel our country state-owned enterprise's reform further.