The Research About The Impact Of The Listed Company's Internal Control Environment In Additional Refinancing Performance

With the continuous development of Chinese capital market, the Listed Company needs more refinancing, there is a preference to equity refinancing. Since the reform of Equity Division, the refinancing way gradually change allotment into additional refinancing mainly. As a equity refinancing way which was widely used in the capital market of developed countries and had high degree of marketization, additional refinancing started to be continually trying and promotion. It played an important role in improving the value of listed companies, promoting the cooperation and competition between business strategies, solving the problem of investment and financing.Chinese listed companies keen on additional refinancing, at the same time, most of the listed companies have a low performance after implementing. Many domestic scholars research into this subject, some think that is the result of the irrational financing, some think that is because of improper use of raising funds, and others think the reason is the controlling shareholders through related transaction and assets reorganization to "empty" the company. All of those can be the important reason to cause the low performance after additional refinancing. But under the certain financing mode, the cause of low performance after additional refinancing has relationship to outside environment such as securities regulators, investors and other medium institutions, it is also due to the listed company's internal control environment such as the structure of the organization, enterprise culture, human resources policies. This paper is on the above situation, analyzed the internal control environment implementation in listed company, and discussed the performance of the additional financing, then come up with suggestion from the point of internal control environment for regularizing listed companies' additional refinancing activities and improving the refinancing performance.The first part of the paper described the characteristics, conditions and development course of the additional refinancing in China, and analyzed the reason of the low refinancing performance from a theoretical perspective. At the second part, analyzed the development of the theory of internal control environment and the current specific factors, reviewed the domestic and overseas scholars'literatures about internal control environment and enterprise performance, in order to provide theory basis for analyzing the relationship between internal control environment and refinancing performance. At the empirical part, the article selected additional refinancing companies in 2006 as samples. First, the article established an evaluation model according to the analysis of internal control environment theory, collated and evaluated the sample's internal control environment. Second, the article picked up two indicators to analysis the additional refinancing performance according to the related literature research results, and it made preliminary statistics. Finally, the article built an empirical model between the internal control environment and additional refinancing performance, validated the two factors have significant positive correlation.Through both theoretical and empirical research, the article brought forward several proposals:the regulators how to supervision and examination of the additional refinancing behavior of the enterprise, the managers how to management enterprises in order to improve additional refinancing performance, the investors how to analysis enterprise performance, choose better investment targets.