Research On Executives Background Characteristics And Internal Control Effectiveness

Effective internal control is to prevent,detect and eliminate illegal and fraud in the financial statements,improve management level of enterprise and maintain the interest of creditors.About the influence factors of internal control effectiveness,domestic and foreign scholars study of the effectiveness of the internal control level mostly from the perspective of corporate governance and operating characteristics.As an important human resource of the company,Executives background characteristics such as age,gender,level of education will affect the executive business philosophy,values,and behavioral decision which is an integral part of internal control.Research shows that agricultural listed company's internal control effectiveness level has been low in our country.Therefore,study about the influence factors of agricultural listed companies internal control effectiveness is not only help improve China's comprehensive national strength,but also provide reference for selection and appointment of senior executives for agricultural listed companies.In this article,the principal-agent theory,human capital theory,the upper echelon theory and internal control theory are used to explain the executives background characteristics impact on internal control effectiveness On the basis of summarizing the related literature at home and abroad,multiple regression model is established for the empirical analysis which take 244 samples of data from 2006 to 2014 of agricultural listed companies as the research object,select the chairman,general manager,chairman of the board of supervisors,chief financial officer of four key executives of age,gender,education,tenure as main variables,select executive power,executive scale,executive compensation,equity concentration,the company size,time to market,growth opportunity,profitability,and financial leverage as control variables combined with the feature of corporate governance,business,financial condition.The results show that there is a certain correlation between the effectiveness of agricultural listed company executives background characteristics and internal controls.Specifically: age and education of senior executives have a significant positive impact on the effectiveness of internal control;the proportion of male executives on the effectiveness of internal control in an inverted U-shaped impact;a term executives effective internal control of influence,but not significantly.Put forward the following Suggestions:Focus executive team members age structure,the appointment of experienced middle-aged,too young to avoid the formation of theexecutive team;focus on the role of women in senior management,an appropriate increase in the proportion of female senior executives,to male to female ratio is moderate;in the selection of new executives appointed as highly educated staff and focus on improving the qualifications of senior executives.