China's Listed Companies Internal Control And Corporate Value Study

With the continuous development of the economy and the advancement of technology, global competition is more intense, enterprises are facing more turbulent and changeable environment.It has been a focus than how enterprise can develop continuously and become a winner. According to the experiences of foreign countries or China itself, every successful enterprise needs the support of a comprehensive internal control system.In 2008, Chinese government published "Law the Basic Requirements of Corporate Internal Control", the first framework of standards for corporate internal control, as raise higher request for the internal control systems of Chinese listed companies.On April 26th,2010, the Ministry of Finance, the Securities and Futures Commission, the Audit Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission jointly issued the "Guidelines on Internal Control supporting", conference on the implementation of the standard system of internal control request.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 relation between internal control and corporate value, aims at providing new ideas on how to build internal control evaluation system of our listed companies and how to improve our corporate internal control.First, the paper made a systematic summary and review about the history and development of internal control and relevant research at home and abroad. Followed by elements of internal control and business relevance of the theoretical basis of the value of doing in-depth analysis, and then combined with the internal framework and the COSO specific situation in China, listed companies in Chine within the proposed evaluation index system, and finally through the empirical study, the establishment of internal control of listed companies and business value elements of the correlation model, at last draw conclusions. In research methods, the article contributed internal control comprehensive evaluation index index, in order to prove its conclusion. By using concrete data acquired from our listed companies to empirical research, it comes to the conclusion that internal control factors and corporate value have direct correlation.