Research On The Internal Control Deficiency And The Corporate Value

Internal control plays an important role on ensuring the authenticity and credibility of accounting information, protecting the legitimate rights of investors and the effective operation of capital markets. However, major huge financial fraud cases occur frequently, making the shareholders and stakeholders suffered losses. Meanwhile, they realized that if there are internal control deficiencies in the company, it will result in the negligence of managers happen, and it even will make the company suffer a fatal hit.Taking the internal control deficiencies main line, the dissertation first describes the background, meaning, content and methods, and then the internal control deficiencies and the market value of the relevant literature comprehensive analysis of internal control deficiencies discussed with the company's market value theory, deepen research dissertation. Based on the analysis above, the model of empirical analysis generated, from three aspects impact on the company's internal control deficiencies market value of the empirical analysis. Finally, the full text summary and recommendations presented insufficiency.The presence of internal control deficiencies will reduce the company's market value, the company having an internal control deficiencies present internal control self-assessment report and internal control audit report, which will reduce the degree of reduction in the market value of the company, but the results are not very marked. This paper argues that the company should further improve the sound internal control system to reduce the chance of internal control deficiencies existing, reduce the risk of the enterprise, but also improve the corresponding responsibility system, strengthen the punishment mechanism, specify and subdivide the content of the information disclosure of internal control and develop professionals, to make information more authentic and reliable.