Research On How Does The Implementation Of Internal Control Effect The Corporate Performance

With the development of the economy, the internal control both in theory and practice is getting perfect. According to the history of the internal control development, the USA and other Western countries are always in the cutting edge. But in the past few years our Chinese government has been making great efforts to strengthen supervising the performance of the internal control in the company, especially in the listed company.June28st2008, Ministry of Finance, stock supervisory committee, audit administration, Banking Regulatory Commission and the China Insurance Regulatory Commission jointly enacted the " basic specification of the Internal control " which builds the basic framework of the internal control in China. The implementation of it calls on a higher demand on a higher demand of the internal control in the listed company. In2010, China promulgated the "Enterprise Internal Control Guidelines," Corporate Internal Control Assessment Guidelines "and" enterprise internal control audit guidelines ". which means the improvement of China’s construction internal control.Though it has been attached importance to, the effect of internal control is not necessarily immediate. In addition the implement of it varies from company to company, whether it is effective is not certain. The enterprise is such an organization runs for profit, and the business growth is what all the enterprises go after. If it is to be proved that the effective internal control can boost the business, not only the issued company but all the enterprises will make efforts to carry it out.This article use the Listed Companies Issue Both A Shares and H Shares as sample to study the influence of internal control and its five elements to the performance of the company. The structure and mail content are as followed, first is the review of the internal control, the enterprises" performance and the influence the former over the latter. Then this essay describes the evaluation of internal control and its implementation, specifically addressed the five elements and the specific internal control theory to analyze the specific impacts on the performance of the company. Additionally, the listed company both issued A and H stocks are selected as sample to prove the influence noted in the third part of the essay in an empirical way. And the last, according to the fourth part some suggestions will be made to improve the effectiveness of the internal control.There exists lots of articles studying internal control though, the essay which focuses on the influence between internal control and enterprise performance is rare.This article is based on the theory and practical method to analyze the specific impact of the five elements and the internal control itself, with the combination of macro and micro method. It makes the point more al and empirical combination of the more convinced.However, due to ignoring of other factors for the impact on company performance, such as corporate culture and other factors that can not be specific metric. In addition, we select only the data for listed companies issue both A shares and H shares as a sample for analysis and there may be some problems on the structure of the model, as well as listed companies reported the authenticity of the data itself, and other reasons, may make this article has a certain limitations.