A Study On The Factors Affecting Internal Control Efficiency Of Financial Listed Company

The financial industry has the characteristics of high leverage, high risk and high relevance, financial listed companies as the main body of financial market, perfecting the internal control and improving the effectiveness of the internal control of the financial listed companies is the key to enhance the competitiveness of China’s financial industry. This paper studied the influence factors of the effectiveness of internal control, selected the Shanghai stock exchange and Shenzhen stock exchange financial listed companies 2011 to 2013 data, and verified the research hypotheses. This paper selected the internal control index to measure the effectiveness of internal control of financial listed companies, comparing by industry, region,stock exchange and type analyzed the situation of the effectiveness of internal control, and from the decision layer, management layer, and supervision layer empirical studied the factors affecting of internal control efficiency of financial listed companies, verified the influence direction and level of board size, independent directors proportion, the setting of the special committee, the combination of director and general manager, executive compensation, executive shareholding proportion, the board of supervisors size, the board of supervisors meeting number on internal control efficiency of financial listed companies.The situation analysis results show that the effectiveness of internal control of financial listed companies at the forefront in the whole industry, and the effectiveness of internal control showed rising trend, but the effectiveness of internal control of financial listed companies has certain difference between the different area, the different exchange and the different types of financial listed companies. The empirical results show that, among the whole decision layer, management layer, and supervision layer index, the decision layer index board size and the combination of director and general manager have a significant impact on the effectiveness of internal control of financial listed companies, however the decision layer index independent directors proportion and the setting of the special committee, the management layer index executive compensation and executive shareholding proportion, the supervision layer index supervision size and the board of supervisors meeting number have no significant effect on the effectiveness of internal control of financial listed companies.This paper integrate use of the literature research method, qualitative analysis method and quantitative analysis method, analyzed the current situation and development trend of the effectiveness of internal control of financial listed companies, from the decision layer, management layer, and supervision layer empirical studied the factors affecting of internal control efficiency of financial listed companies. The study of this paper makes up for the study vacancy of the effectiveness of internal control of financial listed companies, expands the theory study scope of internal control, and has the vital significance on the sound operation of financial markets and financial security in our country, and even the entire national economy sound and steady development.