| It is known that internal control mechanism is an important part of corporate management and operations, which is the key to the development of an enterprise. As a consequence, the system construction and the results of implementation in internal control mechanism has been a hot issue for national regulatory authorities and business fields. It can be seen that China’s power industry is both high density and high risk in technology, capital and management so that it has to develop reasonable and effective internal control mechanisms based on its industry characteristics.In this paper, the power generation enterprises will be selected as the research object, the concept and application of internal control mechanisms and enterprise value theory is described, brief introduction of internal control theory and its development process, and enterprise value of the basic theory and evaluation method of, combined with the status of power of the enterprise’s internal control system and analysis of existing problems. Evaluation system and modeling approaches of validity of control mechanism are introduced in power generation enterprise. The evaluation system includes selection method of evaluation index, construction principle, and definition, selection principle and computing method of variables. Simultaneously, a complete evaluation model is constructed by means of a correlation analysis hypothesis relying on the actual operation data of a number of large power generation enterprises. Evaluation model and control mechanism in power generation enterprises are studied by empirical research. According to the relevant theory and mathematical analysis method, correlation between control mechanism and enterprise value is analyzed in detail to provide a strong basis for the management and construction of power generation enterprises and prospects. The main conclusions are as follows. First, the value of the power generation enterprise is significantly positively correlated with the goal of the internal control strategy, the realization degree of the business objectives and the security of the funds. This conclusion is consistent with the hypothesis proposed. Second, the goal of corporate financial reporting and legitimacy is positively related to the value of power generation enterprises, but it is not significant. Third, there was a negative correlation between the enterprise value and the enterprise scale, but not significant. And the enterprise value is positively related to the concentration degree of the enterprise, while the asset liability ratio of the power generation enterprise is negatively related to the enterprise value. Finally, according to the above conclusions, the deviations of the empirical results are analyzed, and the corresponding policy recommendations are put forward. |
