Thinking For The Construction Of Internal Control Based On The Enterprise Value Promotion

In June2008, the ministry of finance, China Securities Regulatory Commission, Auditing Administration, the China banking regulatory commission, insurance regulatory commission five ministries jointly issued the "Basic norms of internal control" and17specific control specifications, then on April26,2010, jointly issued" the enterprise internal control supporting guidelines", so our further to strengthen the specification requirements in terms of enterprise internal control construction. From the early bankruptcy of Enron on account of the governance structure defects and ignoring the internal risk control, the late China Aviation Oil incidents, whose internal control as a dummy, cannot effectively guard against risk, until the recent Xiang e Qing events:because of the lack of internal control and management, it were tricked into60million. This series of events have attached importance to the development process of the enterprise internal control construction. However, through the survey about the enterprise internal control construction and the implement effect, we found that Chinese enterprises have insufficient understanding on establishing and implementing the internal control:our country enterprise’s internal control is established and developed under the impetus of the internal control systems, basically according to the requirements of the securities laws and regulations. In thinking, the internal control system is on behalf of the external institutions and enterprise management authorities to supervise the economic activities of enterprise, to find problems existing in the process of economic activities, to prevent the risk happening, even more is based on the enterprise risk prevention, and rarely start from their own development needs, to play the role of the internal control construction in promoting enterprise value. Internal control as a main method of enterprise management runs through the whole process of business activities, through effecting the enterprise each department and operation processes, it makes effectively service for the enterprise’s target, not only can effectively against the risk, also helps to achieve the goals of enterprise strategy, promote enterprise’s value. Internal control is on the basis of the principal-agent relationship with the company’s corporate governance structure; it is necessarily related to the long-term development of the enterprise strategy and the implementation of the enterprise value maximization. Therefore, this article seizes the promoting relationship between internal control and enterprise value, from the perspective of enterprise value to study the construction of internal control: enterprises in the building of the internal control should has the improvement of the enterprise value for its object.This paper first reviews the existing literatures at home and abroad, introduces the development of internal control and the relevant concepts of risk management and enterprise value. Then, explain the relationship of the internal control and risk management, the correlation of internal control and the enterprise value is emphatically analyzed; on the basis of theoretical analysis to build the internal control factors comprehensive evaluation index, the factors of internal control evaluation index and index of enterprise value simultaneous to build regression model, select the textile industry empirical data to show that the effective internal control has a promoting effect to maximize the enterprise value. Then, based on theoretical analysis and empirical results, through the actual case to proof that the construction of internal control should take increase enterprise value as the goal, only in this way, can give full play to the effectiveness of internal control, promote the sustainable development of enterprises. Finally, put forward how to construct the internal control system which based on improving enterprise value, from the enterprise strategy, enterprise culture construction, improve the organizational structure, effective use of information system and strengthening supervision and optimization evaluation system.