The Mediating Effect Of Internal Control On The Influence Of Ownership Structure On Firm Performance Corporation

With the continuous development of market economy,market competition is increasingly fierce,financial scandals are constantly emerging,partly reflects the defects of internal control.To cope with this problem,the United States took the lead,the United States Congress introduced the "Sarbanes-Oxley act" in 2002,followed by other countries.In recent years,our country has begun to attach importance to the construction of internal control,has issued a series of laws and regulations.This paper takes the formal implementation of the enterprise internal control supporting guidance in 2012 as the research background,selecting the listed companies on Shanghai and Shenzhen stock exchange from year 2012 to 2014 as the research sample,and researching on the inner connection of equity structure(equity concentration and equity balance degree),effectiveness of internal control and enterprise operating performance.This paper uses internal control as an intermediary variable,equity structure as the explanatory variable,business performance as the explained variable to discuss the relationship between the equity structure and corporate performance,ownership structure and internal control respectively.At last,it studies the intermediary role of internal control in the relationship between ownership structure and enterprises operating performance,and find out the transmission path between the three.Using ownership concentration(the first big shareholder's stake)and equity balance degree(the sum of the second largest shareholder to the tenth largest shareholder ownership)as the substitution variables of equity structure,using internal control composite index listed corporation developed by Shenzhen Di Po risk management technology co.,LTD to quantify internal control,using net profit margin of total assets to measure enterprises operating performance,and drawing on the research results of Zhonglin Wen and others(2004)to study the conduction path between the three,and the conclusions are as follows:(1)Equity concentration is significantly positively correlated with business performance,and business performance is improved with the increase of equity concentration(the proportion of the first largest shareholder);Equity balance degree significantly positive correlated with enterprise performance,improving the sum of the second largest shareholder to the tenth largest shareholder shareholding ratio can improve the other shareholders except of the first big shareholder's ability to balance the first big shareholder,and produce beneficial effects on operating performance of companies.(2)The ownership concentration is positively correlated with the effectiveness of the internal control,and the effectiveness of the internal control increases with the increase of the degree of ownership concentration;Equity balance degree and effectiveness of internal control has significantly positive correlation,the effectiveness of internal control can improve with the improvement of equity balance degree.(3)Internal control has significant partial mediation conduction effect on influence of ownership concentration and equity balance degree to business performance.