Research On The Influence Of Equity Restriction And Effectiveness Of Internal Control On Enterprise Performance In Listed Companies

In recent decades,especially since the Reform and Opening,China’s capital market has been rapidly developed,and it has obviously been an important part of China’s socialist market economic system.As listed companies play an significant role in the capital market,issues about the listed companies’ equity restriction,the effectiveness of internal control and the performance of the listed companies caught a lot of scholars’ attention.The ownership structure is the reflect of listed companies’ inherent risk and benefit distribution mechanism,it is the foundation of corporate governance structure,and take a major impact on enterprise performance.And ownership balance,as an important part of ownership structure,would whether or not improve enterprise performance,which is under discussion.Internal control is an important tool to measure the company’s risk management and control capabilities, the company aims to achieve operational objectives to provide reasonable assurance that its importance is self-evident.Because of China’s listed companies’ special market environment,previous research focused on the correlation between corporate governance structure and corporate performance,the effectiveness of internal control was rarely be considered.In particular,Enterprise Internal Control Guidelines officially started from January1,2012on Shanghai Stock Exchange and Shenzhen Stock Exchange Main Board listed companies,thus strengthening internal control has become the future developing trend.This article is under this context,and aims to explore relations between equity restriction,the effectiveness of internal control and corporate performance by standardizing and empirical study.This paper is divided into five parts.The first chapter is the introduction,the main content includes the background and the significance of this study,reviews of researches,methods,innovation and features.The second chapter focuses on the theoretical basis of the equity restriction,effectiveness of internal control and corporate performance,including the meaning,the metrics,the relevant theoretical basis for the corresponding presentation.The third chapter is theoretical analysis of equity restriction and effectiveness of internal control to corporate performance.The fourth chapter is empirical analysis of the influence of equity restriction,effectiveness of internal control to corporate performance,which based on the above theoretical analysis.The fifth chapter makes conclusions of this study,and at the same time make some suggestions.The innovation and the characteristics of this paper is the discussion about the relation between the effectiveness of internal and enterprise performance. Whether the implementation of internal controls can save companies’ costs is to be considered.At the same time,this paper studies the relation between equity restriction and corporate performance.And then this article explores the impact on the effectiveness of internal control to corporate performance in order to expand the existing studies.Firstly,the research has important practical significance for China’s listed companies to improve corporate performance. Secondly,the Enterprise Internal Control Guidelines officially implemented on January1,2012,the implementation of the new guidelines on China’s market behavior will generate appropriate instructions in new market background.Because the rare research on the relation between effectiveness of internal control and corporate performance,this article is aimed to add some empirical evidence.