The Empirical Research On The Relationship Between The Internal Control Of Listed Companies And Operating Results

With the expansion of company's management control, the internal control problems have become increasingly prominent. Although the general theory think there is a greater internal risk, internal control may also improve corporate decision-making, operational efficiency, reduce transaction costs, therefore, there may be positive.Research on internal control, the general relations between the degree of internal control and corporate operating results has important theoretical and practical significance. In the thesis, theoretical analysis thinks that, enterprise managers who have the economic property; there is a strong motive for internal control. Severe principal-agent relations, objective existence of information asymmetry arising from adverse selection and moral hazard, so the enterprise managers use information advantage of the opportunity to access to internal controls. Because of incomplete contracts, institutional arrangements of the imperfect, protection of property rights has become more difficult under the internal control.Based on the above theoretical analysis, the thesis tests the relationship between the internal control of listed companies and the business performance. Conclusions are as follows: First, the executives of listed companies earn higher income, the better the company's operating performance; Chairman and General Manager of the two level-one, office manager at the board of directors the higher the proportion of listed companies are poor operating performance. Second, at state-controlled enterprises, the relationship between the internal control of listed companies and the business performance is inverted U-curve relationship. In the non-state controlled enterprises, the relationship between the internal control of listed companies and the business performance is a U-curve relationship. For state-owned holding enterprises, appropriate to reduce the level of internal control helps companies improve business performance. For non-state-controlled enterprises, to increase the level of internal control, there is help companies improve business performance. Third, standing the perspective of internal control, the promotion of efficient corporate governance policy recommendations are: continue to implement the state-owned shares, enhance the independence of the board of directors, and improve incentives for system managers.