Research On Internal Control Of Enterprises Based On The Perspective Of Investor Protection

2008subprime crisis triggered by the global economic turmoil, the global stock marketsuffered heavy losses wealth of, the stock market Flash Evaporator, countless investors sufferedheavy losses.2010the trend of global economic recovery is better, but since2011, the globaleconomy can be described as one after another, the debt crisis in Europe and the debt crisis in U.S.one after another, so that the process of fragile economic recovery even worse, constantly devouringthe global economic recovery and an obstacle to future economic growth. All these issues ofinvestor protection more challenges. International challenges face of investor protection, countrieshave to seek countermeasures, to seek an effective internal control system to protect the interests ofinvestors, stable and healthy development of securities markets. Investor protection is an importantguarantee to sustain the stock market prosperity, but the strength of investor protection in thelegislation is not enough to be further strengthened. At present, China’s capital market is one of theworld’s most important emerging capital markets, the theory and practice of investor protection stillin development stage, which also provides us with an excellent research opportunity.The research on internal control based on enterprise of investor protection perspective, shouldconsider the interests of investors during the construction of the internal control to the enterprise tobe able to recognize: On the one hand investors as the needs of the client companies have internalcontrol; the other hand, the quality of the internal control system is an effective mechanism toprotect the legitimate rights and interests of investors. However, at this stage, our internal controlsystem is still in development stage, is still not mature, and generally the quality of internal controlat this stage is low or even missing. Therefore, investor protection and internal control combine theresearch, both adapted to the country is making great efforts to promote building internal controlthis trend will also encourage enterprises to build high-quality internal control system to betterprotect investors’ legitimate interests. The research value of this paper is to enable enterprises to beable to recognize the system of internal control based on the perspective of investor protectionstarting from the protection of the interests of investors during the construction of the internalcontrol should be properly constructed, is located in the corporate control of general principles andthe basic framework, rather than a specific mode of operation. This article does not explore the premise of protecting the interests of investors of different enterprises is how to build the internalcontrol mode, because the composition of the different corporate investors differ, accordingly,different internal control mode has different characteristics.Firstly, through reviewing large number of documents, we find that studies of investorprotection from domestic and foreign, mostly from the perspective of law and contract began inrecent years from the level of corporate governance; study of internal control is mostly from theoutside regulatory and internal management perspective, but directly to study the combination ofinternal control and investor protection is less. Investor protection is the core issue of corporategovernance, it is a very important issue in the development of securities markets, the quality of theinternal control system and promote the protection of investors, This article researches firm internalcontrol from the point of view of investor protection. Second, investors and internal control relatedconcepts defined, and to explore the inner contact of internal control and investor protection. Then,based on the perspective of investor protection from the macro mechanism of corporate governancelevel, the study of China’s internal control issues. Finally, motivation, analysis of the differentinvestors on the internal control objects, targets and measures to come to a different investorprotection point of view of interest under the internal control framework of the Organization.Therefore, when the enterprises build the internal control system, it should be moderate to considerthe interests of investors, from the perspective of investor protection.