A Research On Influence Of Internal Control On The Value Of Corporation

In 2008,Chinese government published Law the Basic Requirements of Corporate Internal Control,the first framework of standards for corporate internal control,as raises higher request for the internal control systems of Chinese listed companies.According to the experiences of foreign countries or China itself,every successful enterprise needs the support of a comprehensive internal control system.However,due to that the establishment of a comprehensive healthy internal control requires a mass input of resources,most of the Chinese listed companies mandatorily set up and perfect their internal control systems.Therefore,this paper tries to do some research to find out the impact of internal control on the value of corporation.In China,empirical research has already covered some academy areas,but internal control seldom catches the research attention.Therefore,based on the principal-agent theory and value management theories,this paper applies the empirical research method to study the correlation between internal control and corporate value.Funding the related data of A-share listed companies in Shenzhen Stock Exchange as research sample,the Principle Component Analysis is used to form a factor,which measures the operation efficiency of internal control comprehensively.Together with auditor opinion and corporate adherence to related regulations, the three factors are used to form a multivariate regression to find out their correlations with the corporate value respectively.This paper comes to the following conclusions.First,the efficiency of operation has positive relation with corporate value.Second,auditor opinion and corporate adherence to related regulations have no significant relations with corporate value.