Internal Control,Enterprise Executive’s Characteristics And Enterprise Executive’s Corruption

Since the 18 th National Congress of the Communist Party of China, a new movement of anti-corruption arisen by the party and the country.People from all works of life pay more and more attention to the problems of executive’s corruption. The corruption of executives not only restrict the development of the enterprises,but also bring serious disaster to the country,so promote the healthy development of enterprise, maintaining social harmony and stability, anti-corruption management is imminent. While in recent years, especially after the Sarbanes – Oxley Act, Internal control has become the focus of the society from all walks of life, China Securities Regulatory Commission also issued a series of rules to promote the development of Internal control, however,whether Internal control can prevent the corruption of the executives, ensure to achieve the goals of Internal control, protect the interests of investors, there is little relevant theoritical analysis and evidence to support.This article study whether Internal control can influence executive’s corruption, and further study whether executive’s characteristics can influence them. The conclusion of this article are that: from the Internal control level, the higher the quality of Internal control, the less the possibility of executive’s corruption; From the five elements of Internal control, controlled environment, controlled activities, information and communication and internal supervision can influence executive’s corruption; By classifying the nature of the enterprise,we found that compared with the State-owned Enterprises, Private Enterprises shows more significant relation between different level Internal control and executive’s corruption; Internal control is not only can influence explicit corruption but also can influence implicit corruption; From the perspective of executive’s characteristics, the age of the executives and the years of working can enhance the influence of Internal control to executive’s corruption.From this article, the research results show Internal control is closely related to the corruption of executives,and the age of the executives, the years of working of the executives can influence them.Improving the Internal control, establish high quality management team are likely playing a positive role to reduce the occurrence of corporate executive’s corruption.In this paper, the research not only enriched the economic consequences of Internal control, illustrates the necessarity of improving Internal control,but also provides the necessary theoretical foundation and empirical evidence for preventing executive’s corruption.