Research Into The Mode And Influencing Factors Of Control Rights Allocation In Listed Manufacturing Corporation

With the internal control failure cases occured frequently, enterprise and governments began to realize the importance of improving the effectiveness of internal control. Enterprise started inproving the internal control according to its conditions, in order to increase the management level and economic benefits. Government issued a series of policies to ensure internal control achieve its goals. However, we found there are few articles about the relationship between control configuration and internal control effectiveness by reading literature, research into the control configuration mode and influencing factors in China’s listed manufacturing companies based on the effectiveness of internal control so as to choose the best mode, which has certain significance.This article combined with previous studies, and the Marx’s property theory,principal-agent theory, company governance theory, and not completely contract theory, then described the definition of the internal control and control right allocation, in order to analysis the relationship between internal control and control right allocation on shareholders layer,board layer, and manager layer. First, we got empirical data from A shares of listed manufacturing companies in China. Then, regard control index as dependent variable, regard the biggest shareholding ratio, the largest shareholder’s nature, the number of the board of directors, the ratio of independent director, the ratio of directors who work in shareholders’ company, the ratio of directors who work in board, the general manager is a member of the board or not, the general manager works in shareholders’ company or not as independent variables, and construct a study model to study the relationship between internal control and control right allocation factors. Finally, combined with the empirical results and current situation, we give listed manufacturing companies some advices about how to choose the best control configuration code from the perspective of internal control effectiveness.The study found that:(1)there is a positive correlation between the ratio of the largest shareholding and the effectiveness of internal control;(2)the scale of the board of directors is significantly and negative correlate with the effectiveness of internal control;(3)there is a positive correlation between the ratio of independent director and the effectiveness of internal control;(4) the general manager affected by the board of directors is significantly and positive correlate with the effectiveness of internal control;(5)for the three types of control rights allocation mode existing in China’s listed manufacturing companies, the third types mode is more effective, and in all kinds of control rights allocation mode, mode 27 is the best,so the listed manufacturing companies should choose the mode 27 as its control rights allocation mode. Based on above, this paper give China’s listed manufacturing companiessome suggestions in two ways: how to distribute the rights of shareholders, board of directors,managers and chose the optimal model according to the effectiveness of internal control.