Research On The Influence Of Internal Environment To Operating Performance Of China’s Private Listed Companies

In recent years, as with the fast development, some of private enterprises continue toappear bankrupt because of the fraud and bad enterprise risk prevention. The external cause isimportant, but the vulnerability of enterprise operation management and the imbalance of thefunction of internal control system also do not lead to creating performance and developingcontinuously, and the incomplete internal environment is the underlying reason for continueddecline in business performance and bankruptcy crisis. Therefore, how the internalenvironment plays the basic role to optimize, and how to maintain good promotion ofbusiness performance should be attached importance to the private enterprises and even thewhole theoretic and practical field.According to the provisions of the internal environment (the internal environment mainlyinclude: organizational structure, development strategy, human resources, corporate socialresponsibility, corporate cultural) in the "basic norms of internal control"(2008) and"supporting guidelines for enterprise internal control"(2010), this paper uses theprincipal-agent theory, stakeholder theory and the motivation theory to analyze the effect ofinternal environment on enterprises operating performance, and puts forward the researchassumption. This paper takes Shanghai and Shenzhen Stock Exchange A share private listingCorporation of2011-2013data as the study sample. This paper establishes the multipleregression model of internal environmental factors and business performance to take a seriesof statistical analysis to verify the relationship between them, based on selectingrepresentative internal environment factors as independent variables (the independentvariables include the proportion of independent directors, the ownership of the firstshareholder and the employees holding college degree or above, social contribution per shareand some virtual variables such as whether the same person of the chairman and the generalmanager, whether the establishment of development strategy committee, whether theimplementation of equity incentive and whether the existence of misbehavior), using thefactor analysis method for the the index system of enterprise operating performance coveringcorporate earnings, operation, debt, growth aspects to get a comprehensive score of businessperformance as variable and taking the scale of the enterprise as the control variable. By using the multiple regression analysis, the paper draws a conclusion that there are exactlydifferent degree’s correlation between internal environmental factors and the businessperformance, which confirms most of the hypothesis. According to the analysis results, thispaper presents some policy proposals to seek new ways of improving private listingcorporation operating performance effectively: optimize the structure of corporate governance,plan enterprise development strategies, establish complete human resource policy, take socialresponsibility into the corporate strategic planning, strengthen the construction of enterpriseculture. Compared with the existing research perspectives, this paper from the perspective ofinternal environment, analyzes its impact on business performance, which is the innovation ofthe article.