Coal Listed Company Internal Control Impact On Corporate Value

Internal control is used to realize the management of legal compliance,asset securecompletely and accounting information reliable, to improve economic efficiency and theeffect of efficiency, a series of methods and measures through self adjustment andcontrol in the enterprise. Internal control has become an important part of enterprisemanagement.It is a kind of advanced organization and management system,playing anincreasingly important role in the production and business operation activities of theenterprise.The stand or fall of internal control implementation directly impact Theenterprise value maximization. In reality, however, the phenomenon that enterpriseinternal control failure appeared, such as large shareholders manipulate the company’sfinancial statements, disclose false accounting information, etc.In2013,the large-scalecoal listed companies Yang Mei chemical industry set a shocking in the history of thelargest financial fraud case is an example of internal control failure. Coal industryoccupies an important place in the national economy in our country and deficiency hasappearred in the coal enterprise internal control.In this context, this article use coalenterprises as the research object to study the relationship between internal control andenterprise value,which is meaningful.In the year of2010, our country promulgated "the enterprise internal control basicnorms" further improved the system of internal control in our country, suggests that thecountry’s emphasis on internal control. In recent years, companies follow the policy toset up their own internal control system and the academic begin to focus on theperformance of the enterprise.When listed coal companies strengthen the internalcontrol,will the enterprise value be affected at the same time? If there is influence,whatmeasures should the enterprise take to realize their value added? Study these problemsis very necessary.This paper reviewed the previous studies on internal control and enterprise value,gave the explicit definitions of internal control and enterprise value. Through testing the relationship between internal control and company value by using the aims of internalcontrol (the effectiveness and efficiency of operation, the reliability of financialreporting, the compliance with laws and regulations) as variables, this study came to thefollowing conclusion: first, the effectiveness and efficiency of operation positivelyrelates to enterprise value, which is consistent with previous studies; second, thereliability of financial reporting positively relates to enterprise value, but not evidently,which complies to prior studies; third, compliance with laws and regulations negativelyrelates to enterprise value, which is inconsistent with previous studies. Based on theresults of this study and through the analysis of the inconsistence with previous studies,this study proposed the following solutions and suggestions in accordance with thefeatures of market circumstance and coal industry. First, the rate of the integration ofresource should be increased. The enterprise merger and acquisition to prompt theexpansion of enterprise scale, and the control of cost can improve the effectiveness andefficiency of the enterprise operation. Second, the supervision department shouldreinforce the supervision of the release of internal control information and promote theindependence of audit in accounting firms in the external way. Meanwhile in theinternal ways, enterprise should improve the structure mechanism and work flow, andprotect and control the environment. Third, the laws and regulations should be promoted,and punishment against illegal behaviors should be intensified. The coal enterpriseshould set up the system of cost control rationally in order to deal with the relationshipbetween cost and efficiency,and obey laws and regulations to take the socialresponsibility and enhance their image.