The Study On The Influence Factors Of Internal Control Effectiveness Of Petrochemical Energy Listing Corporation

In recent years, the operational risk and financial fraud caused by internal control failure appear frequently in petrochemical energy listed corporation of China, which not only seriously damages the corporate reputation and image but also endangers our country capital market’s orderly running. The release of “Basic Standards for Enterprise Internal Control” and “Enterprise Internal Control Guidelines” marks a gradually establishment of standardized system of internal control in our country. But it can not cover all sectors of all business. Only identifying factors which influence the internal control effectiveness, which will be the real solutions to the internal control construction problems of the petrochemical energy listing corporations.The effectiveness of internal control of petrochemical energy listed companies and its influence factors were studied in this article. Firstly, the existing correlation theory of internal control was reviewed. Secondly, the internal control status of petrochemical energy listed companies were analyzed and its problems were identified. Then, The paper designed the index based on the internal control goal and selected 60 petrochemical energy listed companies in the stock markets as samples to measure the effectiveness level of internal control by factor analysis method then drew the composite score ranking. Again, according to the results of internal effectiveness level measurement, the paper proposed hypothesis and used multivariate linear regression method to identify influence factors of internal control and analyzed its impact, The research showed that: state-owned properties as actual controller, the number of bulletins, disclosuring production safety situation, the Audit Committee had significant positive impacts on the effectiveness of internal control of petrochemical energy listed companies, but the ownership concentration had significant negative impacts on the effectiveness of internal control of petrochemical energy listed companies. Finally, this paper put forward reasonable suggestions from the five elements of internal control for fossil energy listed companies to enhance internal control effectiveness.