Based On The Internal Control System Effectiveness Of Corporate Governance Research

The goal of enterprise management is to realize the enterprise and the maximization of shareholder value, internal control and corporate governance mechanism are two important means. Effective internal control system can improve the efficiency of enterprise operation, prevent the formation of agency problems, eliminate waste, fraud and abuse of violation behavior; Corporate governance structure is between the participants through reasonable arrangement of enterprise structure, make it efficient and effect, so as to complete the enterprise target. Internal control and corporate governance structure are short of one cannot. Many domestic and foreign financial fraud and the case of bankruptcy, the company’s internal control the root cause of the failure lies in the defects in corporate governance structure. Therefore, the research of the listed company governance structure influence on the effectiveness of internal control, especially small and medium-sized boards of listed companies, to improve small and medium-sized plate company business performance and enhance investor confidence, and found that more effective regulation.This article selects 2011-2015, 3110 small plate sample data of listed companies in the home for empirical research,the scale of the board of directors, the board size,independent directors possess ratio,ownership concentration,board leadership structure and board executives top three total compensation as explanatory variables,the corporate performance,financial reporting reliability,enterprise management compliance is as explained variables,Will the company size, financial leverage, the net interest rate of the industry average total assets as control variables,the research of small and medium-sized board listed company corporate governance structure on the effectiveness of internal control systems.Study found that:1. The board of directors of the actual number of positive correlation between corporate performance and relationship, but not significant; The actual number of the board of supervisors are negatively related with the company’s performance, but not significantly; The proportion of the independent directors, the chairman of the general manager of positive correlation between corporate performance and relationship, but not significant; The first big shareholder shareholding and executive compensation at the 0.01 level and corporate performance was significantly positive correlation; Company size and performance were positively correlated relationship, but not significantly; Financial leverage and the company’s performance under the 0.05 level was significantly negative correlation; Industry average net interest rate of the total assets and the company’s performance under the 0.01 level was significantly positive correlation; 2. The actual number of board of directors and board of supervisors, the chairman of general manager of real number and financial reporting reliability were positively correlated, but not. Independent directors proportion relation with financial reporting reliability were positively correlated, but not significant; The first big shareholder’s stake in 0.05 level and financial reporting reliability was significantly positive correlation; Executive compensation and financial reporting reliability under the 0.01 level was significantly positive correlation; The company size are negatively related with financial reporting reliability, but not significantly; Financial leverage are negatively related with financial reporting reliability, but not significantly; The net interest rate of the industry average total assets and financial reporting reliability were positively correlated relationship, but not significantly; 3. The actual number of board of directors, board of supervisors, the actual number, the first big shareholder ownership negatively related with business compliance, but not significantly; The proportion of the independent directors, the chairman of the general manager of relation with business compliance were positively correlated, but not significantly; Executive pay at 0.05 significant level have significant positive correlation relationship with business compliance; The company size and business are negatively related compliance, but not significantly; Financial leverage and enterprise operation compliance were positively correlated relationship, but not significantly; Net interest rate of the industry average total assets and business compliance under 0.01 level has significant negative correlation relationship.According to the empirical study conclusion, this paper argues that corporate governance mainly focus on dealing with constraints, supervision and motivation, focus on the control of enterprise internal control decision-making and execution, as well as the specific business activity. Modern enterprise corporate governance and internal control should be the prevention system rooted in enterprise, and incorporated into the daily business operation and management system, committed to decrease the cost of corporate governance, give full play to the effectiveness of internal control. Finally, the paper from the perspective of optimizing corporate governance structure proposed clear responsibilities, and maintaining the independence of the board of directors; Strengthening of the independent director duties; Intensify supervision and advice for the proper checks and balances of equity structure.In this paper, the main innovation is to small and medium-sized plate of the listed company experience as sample data, study the effect of corporate governance structure on internal control system effectiveness.