Research On Effect Of Internal Control Elements On Corporate Value Of Listed Company

In the 1960s, the American Scholar putted forward the concept of corporate value for the first time. Most of western countries think the corporate value will be the single language in 21 century. With the development of technology, the accelerating pace of market integration and economic globallzation, the environment of the management of enterprise also changes greatly. Improving corporate value becomes the effective means for the changing of economic environment. As the series of well-know enterprises went bankrupt, we combine the two concepts internal control and corporate value together. Theoretically, there is a relationship between internal control and corporate value. Practically, the event of Enron, Grant Group also proved that there is a relationship between internal control and corporate value.The most important goal of financial management is increasing the corporate value. And increasing the corporate value needs the management of corporation. Internal control is the main method of management of corporation. Internal control exists in the whole process of business activities of the corporation. This paper seizes the relationship between internal control and corporate value, researching internal control from the perspective of the corporate value management.Firstly, the article summarized the relative research achievements on internal control both home and aboard. Secondly, using theories analyzed the relationship of internal control factors and corporate value. Analyzing how five elements of internal control influence the corporate value. Then, we designed the exponent about internal control. This point is on the base of the five elements of the internal control. We will put the exponent into the model and analyze the relationship between internal control elements and corporate value respectively. Last, we get the results which prove that the internal control could increase the corporate value. On the base of the argument of theory and demonstration, we will provide some advices to improve the internal control.The main contribution of this article:First, broadening the scope of the study of internal control. The study of internal control should not be limited to the traditional view. In this paper, the view of internal control is corporate value. Stressed internal control is an important thing in corporate value management. Clear that the internal control system development and implementation should be to achieve the ultimate goal of maximizing corporate value. Second, we change the research model of internal control and corporate value. Clear that internal control factors how to influence corporate value.