An Empirical Study On The Relevance Between The Internal Control Quality And Enterprise Value

China announced The Basic Standard for Enterprise Internal Control in2008, whichconstructed a framework of enterprise internal control standards for the first time andachieved the convergence with international enterprises’, required our exchange-listedfirms’ internal control systems highly. Then some related laws and regulations came out,especially the Implementation Guidelines for Enterprise Internal control that providedstrong policy support for carrying out the strategy of making our enterprisesinternationalization and promoted the development of China’s internal control system inenterprise. However, currently most of our enterprise are still forced by policy, lack ofthe initiative of internal control and construction. Most enterprises are still consideredthe internal control of is the yoke of the enterprises’ development and the increased ofbusiness benefits.This thesis is to correct the misunderstanding of enterprise internal control. Firstly,it analyzed on theory of internal control and enterprise value goal congruence whichincluding two aspects, internal control target dimensions and internal control elementlevel to draw the high relevant conclusion between them. Secondly, it constructedinternal control quality evaluation index and enterprise value target to build thecorrelation model. Finally, the theoretic conclusion was verified by from the angle ofmathematical validate. The final conclusion is that the internal control in high qualitycan affect the value of enterprise through the integrity, availability, complianceconduction of internal control.Due to the research of the internal control quality and enterprise values, this thesisprovided the support for the empirical study methods and new thoughts for evaluationmethod of the internal control quality.