The Intermediary Effect Research Of Internal Control On The Relation Between Ownership Structure And Corporate Performance

This paper sets internal control as the core under the background of the release ofthe internal control system. Using Shanghai a-share listed companies from year2009to2012as the research object, this paper defines the related concepts, selectsvariables to study and build the model, then uses SAS9.1statistic soft to analyze theimpact of ownership structure on corporate performance by the mediation effect ofinternal control.This paper uses the ownership concentration and equity balance degree andnature of equity as substitution variables of equity structure, takes listed companiesinternal control index issued by the ministry of finance group in2011to measure thelevel of internal control, and corporate performance is measured by ROA, Thisdissertation tests intermediary effect of internal control on the relation betweenownership structure and corporate performance. Through the empirical research, thetest results are as follows:(1) The ownership concentration has a significantly positiveinfluence on corporate performance, in other words, the higher the ownershipconcentration is, the better the performance will be; the Equity balance degree(second to the fifth largest shareholder’s ability to balance the largest shareholders)has a significantly positive influence on corporate performance, in other words, thestronger ownership balance power is, the better the performance will be; The Natureof equity has a significantly negative influence on corporate performance, that is tosay, non-state enterprise’s business performance is better than the performance ofstate-owned enterprises.(2) The relationship of the ownership concentration and thelevel of internal control is significantly positive, namely the ownership concentrationis higher, the higher the level of internal control will be; Equity balance degree andlevel of internal control has significant positive correlation, namely the strongerownership balance ability is more conducive to the improvement of internal control;The relationship of the nature of equity and the internal control level is notsignificantly positive, the level of internal control of state-owned enterprises is betterthan that of non-state-owned enterprise.(3) The internal control has the intermediaryeffect on the relation between influences of " ownership concentration,Equity balancedegree " on earnings quality, but for the nature of equity, the intermediary effect is notobviously. In the end, the paper summarizes the related conclusion briefly, puts forwardsome suggestions as follows: the listed company shall maintain proper ownershipconcentration and equity balance degree, and it is important to strengthen theconstruction of internal control system and accelerate the implementation of thesystem. On this basis, the ownership structure and the internal control system canimprove in harmon.