The Empircal Research Of The Impact Of The Education Background Of Chaireman To Internal Control Efficiency

The relation between the education background of chairman and internal control efficiency is a problem that have value of studing, which has not been studied yet.Chaimen are NO.1in a company and play a core role in internal control.Chinese chairmen stand for the main power of internal control.The lack of internal control are mostly related to the education background of chairman.The quality, conduct and value of chairmen have great influence on internal control efficiency.This paper reviews and analysis related papers. By conconluding from and these papers,we analyse the relation between them.This paper bases on the heterogeneity of human capital theory, top manager theory and corporation governance theory to analysis the relation of the human capital characters chairman and internal control efficiency.Whether internal control success or fail depend on the thoughts of humen rather the differences of systems.In internal control,the thoughs of management are more important than internal systems and technologys.Education determine thought and thought determine action.Only when one have the right view of internal control,he or she pays attentions to internal control turely.Solving the problem of thought is the key of improving the internal control.The heterogeneity of human capitalof entrepreneurs have unique qualitys and abilities of management.As the represent of heterogeneity of human capital,chairmen are the key of designing and carring out internal control.Their education background affect directly the efficiency and effection of internal control. The manger who accept education or not, the level of education they accept result in the differences of the mode of cognitive.Chairmen are main bady of internal contral and corporation governce, corporation governce influence the aspects of internal control and affect internal control.Based five factors of internal control, we design model and index system of internal control efficiency and use AHP method to deal with data. With the results of questionnaires, we use AHP method to calculate coefficient, collect data by referring to financial reports and internal control self assessment reports of listed companies of Shanghai and Shenzhen Stock Exchange handy to calculate the ratios of internal control efficiency from2008to2010. We also collect the education of chairmen and company culture by hand.This paper uses the degree, major and the experience of studying abroad to instead the education background of chairman. By collecting the finical report and other information of listed companies of Shenzhen and Shanghai Stock Exchange from2008to2010, this paper tests empirically the impact of the education background of chairman to internal control efficiency for the first time. The result indicats that the education background of chairman and internal control efficiency have the positive correlation. The degree of chairman and internal control efficiency have the positive correlation. Whether the major of chairman is financial, accounting, economic and management or not has the positive correlation with internal control efficiency. Whether the chairman studying abroad or not has the positive correlation with internal control efficiency, but it is not significant.To analysis deeply the influence under different owmers, we divide the dadas into2parts.The results show that the relation between ecudation background of chairmen of state-ownered company and internal control is more positive.The significance of this paper is not only enrich the papers,but also find the affects aspects of internal control from the views of qualites of managers. We try to find the characters of chairmen which are beneficial to the internal control efficiency by studying the relevance between the relevance of chairman and internal control efficiency deeply using empirical method. Getting a clear perspective of the relevance is useful to improve internal control efficiency and perfect the usage of top managers at the microscopic level.The results of this paper are also useful to the developing countries that have similar background as China.