The Empirical Research On Evaluation Criteria Of The Corporate Financial Control Validity

In recent years, the "central enterprise financial evaluation guidelines of internal control" and a series of regulations and policies were introduced, marking that the evaluation work of corporate financial control has already started. At present, the biggest difficulty in the validity evaluation of financial control is the numerous evaluation index range and too much subjective judgments. It is difficult and costly to implement effectively. The author attempts to design a set of qualitative and quantitative indices, hopes to increase the validity of financial control evaluation criteria for the relevant government departments to improve the efficiency of financial control, and expects to provide the available empirical evidence for the validity evaluation.By combing and comparative the research literature which are analysis of the effectiveness of domestic and foreign internal control evaluation, the author points out the deficiencies of the existing research and hopes to provide theoretical support and direction for the evaluation of internal control system and future research. Based on the literature of the sort of financial control, and combined with the "central enterprise financial evaluation guidelines of internal control", the author did the research in the 603 sets of indicators (2007-2009) of the 201 Chinese listed manufacturing companies (equipment, machinery, and meters), described the data statistics and correlation analysis, extracted the identification mark of the evaluation on financial control, and researched the evaluation model and the validity of financial control standards. The conclusions and contributions of this dissertation are as follows.Firstly, after studied the validity and variable stability of financial control, it has shown that a significant majority of financial control indices affected by the accounting policies, observation time window and the sample of instability. The two indicators only, which are earnings per share and the establishment of Audit Committee, are not affected.Secondly, the financial control evaluation model and evaluation criteria are established. The results show that the explanatory variable indicators including asset turnover, earnings per share, and the audit opinion.Thirdly, the validity of financial control and lag phase of the financial control performance are discussed. It shows that the performance of the lag phase is superior to the current period, the financial control validity of 45% of the sample companies are improved.