Effectiveness Of Internal Control And Corporate Executives Of Financial Corruption Correlation Study

Executives news of the fall appeared frequently in recent years, for example, mobile and other large oil company executives in the cut, corporate executives, corruption is also more and more get the attention of people, however, a growing number of executives of corruption cases happen, let us in to deal with corruption in the process of had to study the mechanism of corporate executives, to come up from fundamental corporate executives to prevent corruption from happening. The system of the external factors are likely to be in a certain extent, cause executives of corruption, but we should also realize the system of the enterprise internal factors also became the important cause of corporate executives, corruption. While internal control occupies a very important role within the company, its business executives corruption and have a major impact, good internal control can urge enterprise executives to complete their responsibilities seriously, reduce enterprise information asymmetry between shareholders and executives, make enterprise shareholders better supervise the behavior of the executives, to reduce the executives of corruption, reduce agency cost. At the same time we should also realize the enterprise's development goal is to maximize shareholder wealth, corruption and corporate executives and internal control issues will play an important role to achieve the goal of the, this article is based on the study.This article mainly from the Angle of incentive executives corruption to study the effect of internal control for executives of corruption. Based on the above ideas this article selects the listed on the Shanghai and shenzhen exchange traded non-financial a-share listed companies in 2012-2013 of 1434 samples were studied. Adopt the method of qualitative analysis and theoretical analysis of corporate executives, corruption and the important cause of enterprise internal, combing the literature of the internal control system, analyzes the domestic and foreign scholars for executives of corruption and the relationship between the internal control, at the same time to the enterprise executive corruption connotation, type, inducing mechanism and internal control, development course, the meaning of the five elements, the theoretical basis for the analysis of the system, and then through the method of quantitative analysis and empirical analysis of corporate executives, corruption and internal control effectiveness is analyzed to conclude that the results of the study showed that the effectiveness of internal control is negatively related to the executives of corruption. Research results show that the more effective the internal control can inhibit the occurrence frequency of corporate executives, corruption, also is the system of internal control effectiveness of the internal factors and corporate executives has a close connection between financial corruption, the higher the effectiveness of internal control, corporate executives, the smaller the possibility of corruption, the lower the effectiveness of internal control, corporate executives, corruption is more likely to happen. In this paper, the research not only perfect the related research of corporate executives, corruption, but also for the enterprise executive corruption governance provides a new train of thought and the suggestion, but also enrich the enterprise method to improve the performance of the company, also can strengthen the enterprise management to the construction of internal control consciousness, realize the maximization of the value of the enterprise.