Research On The Impact Of Ownership Structure On Internal Control Effeciency For The Listed Companies

The internal control is an important implement to ensure the operation and other goals of an enterprise to achieve successfully. Since the basic norms of internal control and its supporting guidelines issued and applied, the overall situation of the listed companies internal control design. implementation and disclosure has been significantly improved. That provided a guarantee to protect the interests of investors and maintain good order of the capital market. However, many enterprises don’t follow the principle of cost benefits in the process of establishing and implementing the internal control. They blindly pursue the surface effect of internal control while ignoring the cost management, causing the low internal control efficiency. Large quantity of domestic and international studies have found that many factors affect the internal control of enterprises, corporate governance is one of the important aspects. The split-share reform to Chinese listed companies has been going on for ten years, liquidity of shares in the capital market has been improved, and the diversification of the main body of the investment has been enhanced, which made the corporate governance environment has been optimized to some extent. But some problems are still unsolved. Under this background, how does the ownership structure influence the internal control efficiency is a worthy problem to explore.This thesis firstly reviews and analyzes the relevant domestic and international research findings from three aspect:the ownership structure, the internal control efficiency and the influnce of ownership structure to internal control, which leads to and defines the research problem. Then, definates the concept of the main research object-the ownership structure and the internal control efficiency, especially focusing on the two levels of the internal control efficiency-objective level and cost-benefit level. With the use of property rights theory, contract theory, principal & agent theory and stakeholder theory, this study analyzes the impact mechanism of the ownership structure to the internal control efficiency and then puts forward the research hypothesis. In the empirical research, I select A-share samples of listed companies nearly three years in China, using the entropy weight method to build an evaluation index of the internal control efficiency, then test the impact of ownership structure on the internal control efficiency through correlation analysis and multiple regression analysis.The empirical results show that the degree of equity balance in our country’s listed company is positively correlated with internal control efficiency. Ownership concentration degree, managerial ownership proportion, institutional investors’ shareholding proportion and state-owned shares proportion have non-linear relationships with internal control efficiency. Among them, the ownership concentration degree, state-owned shares proportion have significant "inverted U" relationship with the internal control efficiency, managerial ownership proportion and the institutional investors’ shareholding proportion have significant "U" type of relationship with the internal control efficiency.This thesis makes a try to measure internal control efficiency and apply it in the empirical research, then provide recommendations to optimize the ownership structure of listed companies and improve the internal control efficiency from every ownership structure variable. The research has some theoretical and practical significance. However, there are still many deficiencies in my thesis which requairs further research in the future.