Research On Way Of The Enterprise Value Promotion Based On Internal Control

With the development of economy globalization and market integration, enterprise environment has changed greatly, it has been a focus that how enterprise can develop continuously and become a winner. After 21 century, a lot of international enterprises have bankrupted, the reason is that enterprise value decrease because internal control loses effectiveness. So ,the research on way of enterprise value promotion based on internal control becomes very necessary, the article discusses the relation of internal control and enterprise value, proposes the new thought ,it also can help enterprise promote value , further, it may be a reference of enterprise management. The article has two innovation, the first is that internal control becomes the means of enterprise value promotion, the second, introduces COSO ERM integrated framework, it combines internal control and enterprise value perfectly.The article concludes four chapters, the first chapter proposes the aim ,meaning ,research method and research content of the article, and summarizes other's research on internal control and enterprise value, the second chapter is the basic principles about internal control and enterprise value, they will be the base of the rest chapters. The emphases are the third chapter and the fourth chapter, the third chapter analyses the relevance on internal control and enterprise value through many faces, firstly, economics principle, secondly, analyze generally, conclude internal control objective, internal control levels and value theory development and so on. Thirdly make use of cash flow model and COSO ERM integrated framework to analyze concretely, mainly concentrates on strategic objective, operations objective, reporting objective, compliance objective and eight factors: internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, monitoring. How they promote enterprise value. The last chapter puts forward the ways of enterprise value promotion based on internal control, it conclude two faces: financial ways and others, in regard to financial ways, it uses internal control to improve cash flow and reduce capital cost and develop continuously, others conclude making appropriate objective, improving environments and reinforcing risk assessment, risk response and so on, then summarize the whole article.