Empirical Research On Internal Control And Enterprise Value Under The Background Of Compulsory Audit

Spate of financial fraud scandals occurred in the United States at the beginning of this century,hit the investors and the social public's confidence,prompted the United States issued the?Sarbanes-Oxley ACT?in 2002.With the development of economy,China's capital market increasingly mature,and the enterprise internal control construction gradually cause the attention of the society from all walks of life.On the basis of international convergence of the accounting standards,the Treasury and other four ministries gradually established a internal control standard system suitable for China's enterprise,and forced the main board listed company to execute since 2012,marked China entered the stage of compulsory internal control audit since 2012.Effective internal control can not only improve the quality of financial reporting,but also can further enhance the level of corporate governance,reduce the management risks,more efficient use of resources,achieve the financial goals and business objectives of the enterprise,so,improve enterprise value.Empirically research the policy of compulsory internal control audit running in the capital market,not only can provide empirical evidence for policy support,but also can provide reference information for stakeholders' decision.Based on the background of compulsory internal control audit,selected A-share main board listed companies of 2012-2015 as the “compulsory audit” samples,and the companies of 2007-2010 as the "voluntary audit" samples,through A two-stage regression test,we find the following conclusions:(1)The more effective internal control,the enterprise value more greater.(2)the policy of compulsory internal control audit enable managers attaches great importance to the construction of internal control under the double pressures from policy and market to improve the effectiveness of internal control,and increase enterprise value.The results preliminary demonstrated the effectiveness of the internal control auditing system in our country.(3)Compared with the non state-owned enterprises,in the state-owned enterprises,the impact of internal control audit in terms of the internal control and the promotion of enterprise value are stronger.The results show that the construction of internal control of state-owned enterprises has been got effect.The mandatory implementation of the policy of the internal control audit does play a role of demonstration in the lead.The main contribution of this paper as follows: firstly,in the background of the policy of compulsory internal control audit,theoretically discusses the correlation of internal control audit,internal control and enterprise value,and further analysis the difference under the different property rights,widened the research on the economic consequences.Secondly,empirical research on the influence of the internal control audit to the effectiveness of internal control,and the positive impact of internal control audit in terms of the internal control and the promotion of enterprise value,verify the effectiveness of the policy of compulsory internal control audit.Thirdly,can help us to know the present situation of internal control of listed companies,and regulators' role in the process of implementation of internal control auditing system,can provide reference to perfect the regulatory measures and to improve the supervision efficiency for regulators,and put forward policy suggestions to strengthen the internal control construction for the enterprise.The main innovation has three points: firstly,based on the objective theory of internal control,building the theory analysis framework of internal control auditing,internal control and enterprise value.Secondly,based on the background of mandatory internal control auditing policy,empirical researching the relationship of internal control audit,internal control and enterprise value,can provide empirical evidence support for the policy.Thirdly,we analyze the difference of effect of the internal control auditing in the process of internal control to promote enterprise value under the different property rights.