Relationship Investments、internal Controls And The Financial Leverage Of The Firms

In recent years, supplier/customer relationship already became the boom of academic research. Corporate financial leverage level problem is an important part of accounting theory and practice in one of the core issues. There is a widespread enterprises listed companies in China supplier/customer relationship the more investment, the company more likely to choose a relatively low level of financial leverage, the relationship between investment become influence enterprise financial leverage is an important factor. Internal control as enterprise low transaction cost benefits have been obtained at the same time make up for the incomplete contract supplement mechanism and control mechanism, has become the indispensable means to achieve and maintain trust, give full play to the internal control signals and information screening mechanism, in order to realize the expanding the trade between enterprises. Based on relational contracts and rules from the theoretical perspective of contract, to supplier relationships to alternative investment variables, discusses the relationship between investment and internal control and its interaction impact on enterprise financial leverage.This article first to invest in domestic and foreign investment, the relationship with the enterprise financial leverage level, the level of internal control and enterprise financial leverage relevant literature is reviewed. Then on the basis of previous research, respectively to study the relationship between investment and the relationship between the enterprise financial leverage, the relationship between internal control and enterprise financial leverage as well as the relationship between investment and internal control interaction effects on enterprise financial leverage. Based on our country’s listed companies from 2007 to 2011 as the research object, manual data collection supplier/customer relationship investment, establish the corresponding regression model, the relationship between investment, internal control and the relationship between the enterprise financial leverage has carried on the inspection. Research shows that:(1) the supplier/customer relationship investment increase enterprise financial leverage will decline, the high quality of internal control, management of supplier relationship between investment and internal control mechanism to reduce the enterprise financial leverage have played an important role in common, and the relationship between investment and internal control of the substitution effect.(2) the nature of property right is not at the same time, the relationship between investment and the influence of the internal control of enterprise financial leverage level is different, and between the state-owned enterprises and non-state-owned enterprises, complementary relationship between investment and internal control systems/substitution effect is different.