Analysis Of Influence Of Corporate Governance Structure On Effectiveness Of Internal Control

On March 20, 2015, the Ministry of Finance issued the notice about seeing how about the situation of enterprise internal control, one of its aims is to lay the foundation for the development of small and medium-sized enterprise internal control specification. Under the settings, the paper chooses the companies that listed on GEM from 2010 to 2013 as the study sample, and study the relationship between corporate governance and the efficiency of internal control. In order to improving the corporate governance structure of small and medium-sized enterprises, and increase the effectiveness of internal control of small and medium-sized enterprises.It is found that the number of the meeting of directors and supervisors, shares held by the shareholders present at the annual general meeting of shareholders, the size of the board of directors are positively related to the internal control effectiveness, while the proportion of managerial ownership is not significantly related to the effectiveness of the internal control. The power of the first majority shareholder and the size of supervisors are failed to pass the test of significance. So it is better to improve the scale of the board of directors and the board of directors, and increase the number of meetings of the board of supervisors and directors, then control the management ownership. The companies also need to improve the function of supervisors. From the several aspects above, it can improve corporate governance structure and the effectiveness of internal control.