The Research On Effectiveness Of Internal Control To Corporate Value

Internal control since its birth, has experienced five major stages, namely internal check,internal control systems, internal control structure, the integration framework and integratedrisk management framework for internal controls, all based on the progress of each stage toenhance corporate value as the ultimate goal. However endless financial fraud, illegaldisclosure event, and exposed internal controls there are many defects, internal controleffectiveness is being questioned. Chinese specification for Enterprise Internal Control,although a late start, but is now fully implemented. There are between this paper attempts toanalyze the full implementation of the internal control standards, and how the effectiveness ofinternal controls, and the ability to realize its value-added goals.Based on the literature review and theoretical analysis, constructed the index system ofinternal control effectiveness metrics, and select a company listed on the Shenzhen StockExchange and Shanghai2012data, analyzes the current situation of China’s listed companiesinternal control effectiveness; to Tobin Q value of the enterprise value metrics, usingdescriptive statistical analysis, correlation analysis and multiple regression analysis and otherempirical methods to study the impact of the effectiveness of internal control of the enterprisevalue added.Theoretical part of the paper reviews the concepts, objectives and elements of internalcontrol given numerous organizations, combined with their own analysis, starting from thefive elements of internal control, the effectiveness of internal control was constructedevaluation; second article reviews the enterprise concept of value, analysis of its coreelements, and comparative analysis of the metrics enterprise value; Finally, a combination ofinternal control theory and enterprise value theory, the research hypothesis.Empirical analysis section of this paper, by using descriptive statistics, analyzed thecurrent situation and the overall effectiveness of internal control various elements; followedby a preliminary correlation analysis confirmed the effectiveness of internal control andenterprise value between positive correlation, and finally through multiple regression analysisthe method further evidence of effective internal controls can enhance the corporate value ofthe research hypothesis.Conclusions of this study is to enhance the effectiveness of internal control researchenterprise value provides empirical evidence; provides guidance for listed companies toimprove the design and implementation of internal controls; also promote and improveinternal control series specification for the relevant departments to ensure that internal controlvalue achieve the goal of providing a useful reference.