Empirical Research On The Influence Between Effectiveness Of Internal Control And Corporate Values

internal control, originated in the United States, is able to monitor corporate behavior, reduce business risk and protect the company’s asset, finically to maximize the corporate value. The development of internal control in China has many problems so that in2008the Ministry of Finance introduced the "basic norms of internal control" to improve the ability of internal control. The basic norms required the listed companies to issue an internal control evaluation report which must be audited by the audit agency. The basic norms also encourage the non-listed companies to implement this norm. The "basic norms of internal control" means that China has entered a new stage in internal control. Adopting the theoretical and empirical research method, this paper tries to study the relationship between the effectiveness of internal control and the enterprise valueIn theory, this paper first reviews the research on the relationship between the effectiveness of internal control and the enterprise value. This paper find that the current research study from the following two aspects:Firstly, the internal control deficiencies on enterprise value; secondly, the relationship between the elements of internal control and enterprise value control. Therefore, from the angle of the internal control objectives, this paper tries to use a new way to study the relationship. This paper firstly introduces the principal agent theory and the value management theory. Then the paper analyzes the mechanism of internal control and corporate value, which will laid the theoretical foundation for the later empirical research.In the empirical research, this paper follow a strict program of empirical research, including five hypotheses of internal control objectives and enterprise value, the appropriate independent variables and the dependent variable, the establishment of a model and the final regression analysis. In the end, the hypothesis was confinned.Finally, the paper make the conclusions of the study and describe limitations in this paper, and give some recommendations based on the conclusions to improve the ability of internal control.