The Reaserch On The Internal Control Efficiency And Its Influcing Factors Of Listed Companies

There are various economic scandals arising in lots of listed companies in global scope recently because of a lack of effective internal control. Therefore, improving the efficiency of internal control constructions has become the focus of discussion. Effective internal control plays a very important role within the company because it can reduce the chance of errors in all aspects of the company, improve the efficiency of company management and promote the realization of business targets. In the economic development of past decades, some researches on the influence of internal control have emerged gradually. However, with the rapid development and change of economy, there are few related literatures about the efficiency of internal control and we have to admit that its research is still in the development stage. There are so many problems like incomplete understanding to the influence factors of internal control efficiency and non-unified perspectives and conclusions of related research. Therefore, for full implementation of effective internal control, the efficiency and influence factors of internal control should be researched more deeply and more comprehensively, in order to encourage listed companies to effectively complete the ultimate goal of management.This paper discussed about the internal control efficiency and its influencing factors systematically and comprehensively. First of all, to do description and analysis on the effectiveness of internal control and its development according to domestic and international literatures; Secondly, we defined the concepts, effectiveness of internal control and efficiency from theoretical overview, and analyzed the relationship among them; Thirdly, to analyze the factors which affected the effectiveness of the internal control by empirical research method. And we build model with697samples which were gained in Shanghai stock exchange institute with the data of2009and2010. Then, do descriptive analysis, correlation analysis and multiple liner regression analysis on the collated data. The empirical results show that six factors which included the profitability of net assets, the size of external auditors, the nature of the company, operating profit, the company size and audit opinion are significantly associated with the efficiency of the internal control; Other factors are not significantly associated with the efficiency of the internal control. Based on the above conclusions, this paper proposed the suggestion of how to improve the efficiency of the internal control.