Study On How To Influence The Financial Performance By The Internal Control After Making Empirical Analysis On Dozens Of Listed Pharmaceutical Industry

Enterprise internal control has been developing to a crucial and important part thatthe enterprise has concerned and that the theory-world and practice-world circles havebelieved while the global economy is rapidly improving and the capital market isgrowing better thus developing a frequent financial fraud. And, internal control of theenterprise has close relationship with every link of the enterprise daily management,especially the cultivation of the enterprise financial performance, because good internalcontrol could assist the enterprise to improve the operating efficiency, to guarantee thesafety management of the enterprise property, and then it could integrate the businesslinks together to carry out a coordinate and common-developed enterprise. Hence, thereis necessary for an enterprise to grow up a reasonable and perfect internal controlsystem by using scientific method to make a crucial development of the enterprisefinancial performance. As we know, pharmaceutical manufacturing industry is reckonedas a significant part of the whole national economy but with high-risk characteristics.Without the support of a best internal control, pharmaceutical enterprise is less likely tofulfill a healthy and sustained development. Therefore, internal control is developed toan important enterprise system that could help to improve the enterprise financialperformance, but also develop the product quality and manage variety of enterprise risks.Here we mainly discuss the internal control of the pharmaceutical enterprise to provideassistance and reference to some researchers on the relationship of the internal controlof the pharmaceutical enterprise and the enterprise financial performance.This article discusses the research background, significance, the research methodsand innovation points, and then analyzes the current research results of the topic athome and abroad, determines the related concepts of the internal control and financialperformance, and at last based on the theory and practice research, it makes furtherdiscussion and promotes six hypotheses on the relationship of the enterprise internalcontrol and financial performance upon the discussion of the five elements of internalcontrol and of the intended goals. Here we select the pharmaceutical manufacturinglisting enterprises as said by Shenzhen Stock Exchange, collect their financial data in2012and2013, and then by using empirical study, confirm how the five elements ofinternal control affect the enterprise financial performance and whether the internal control goal influences the enterprise financial performance or not. Aftereach enterprise provides the self-evaluation report of the internal control, we consult thereport and the independent opinions on it that the accounting firm puts forwards, andthen quantify the five elements of the internal control, aiming to make specificassessment of the intended goal of the internal control upon combination of Debo’sinternal control index. After that, we select ROE and ROA as the explained variables,choose the asset liability ratio, enterprise scale, business income growth rate andexecutive salaries as the control variables, use SPSS and empirical study to confirm thereal relationship of the enterprise internal control and financial performance.Three resultants are found after the research that the internal environment, riskassessment, information and communication, control activities and realization ofinternal control goal have obvious and positive effect on the enterprise financialperformance, and that there is less likely to have relationship with the internalsupervision and the financial performance, and that there is great help for thepharmaceutical enterprise to make effective improvement on its internal control systemand bring great fulfillment on the financial performance by using the relevantcountermeasures and suggestions which are promoted based on the result of empiricalstudy.