Research For The Influence Of Internal Control On The Enterprise’s Performance

With the globalization development of economy and finance, capital market improved a lot. Internal controls has been being a hot topic by both the academia and empirical in China or abroad. Internal controls can not only ensure legal compliance management, assets safety, true financial reports and related information of an enterprise, but also make all business processes be mutual coordinations and restrictions.It can improve the efficiency and effectiveness of operation and promote the enterprise’s development strategy.Considering the actual situation of the listed enterprises’internal control construction in China, they are now in the initial stage. All the construction needs constant perfection and gradual exploration. Most enterprise lack of autonomy to establish the internal control, they only want to meet the mandatory requirements of national policy.The implementation of internal control has some impact on the performance of an enterprise. So, this paper try to studied and discussed on the impact of the internal control on the enterprise’s performance, hoping can promote the development of the listed enterprises’internal control in China.Basing the researches of previous scholars, this paper combs and integrate the theories of internal control and the enterprise’s performance. A comprehensive evaluation index based on the five elements of internal control was built. Then this paper work out six equation models for every enterprise’s performance index. Some listed cultural industry enterprises was selected as examples in this paper. Through the descriptive statistics,correlation analysis and regression analysis of the example dates, we finally come to the conclusion that there is a positive correlation between the internal control and enterprise business performance. We also find out that the internal control construction need to be improved. So this paper put forward some corresponding suggestion aimed at carious elements of internal control in order to improve the effectiveness of internal control.