The External Governance Environment Internal Control And Corporate Performance

Internal control as one of the important factors affecting enterprise efficiency,has become a hot issue of the academic research in recent years,scholars at home and abroad for its carried out extensive and in-depth study,Especially the promulgation and implementation of the enterprise internal control basic norms and necessary to guide,indicates the establishment of the internal control system,and the government's emphasis on internal control and requirements.At the same time it transmit the importance of sustainable and healthy development of enterprises and improve business performance to enterprise management.However,Scholars' research on enterprise performance focuses on the internal governance perspective,neglect the influence of external environment factors.The business activities of enterprises not only rely on the enterprise internal management system,it should also be coordinated with the external governance environment.Wider breadth of china,and different areas of the geographical distribution,culture,resources endowment,policy guidance,etc are difference,degree of marketization,the government and the market relations,intermediary organizations,and the improvement of legal system environment incentive management to optimize the internal control,so as to improve enterprise performance.This paper,we study the relationship between internal control and corporate performance,then introduce the external governance environment factors,to explore the internal control is affected by external governance environment and the influence on the enterprise performance.This article selects the Shanghai and Shenzhen A-share listed companies from 2012 to2015 as the research object,using regression analysis method to inspect whether the enterprise internal control effect on corporate performance will be affected by external governance environment.The results show that:(1)to improve the quality of internal control can effectively promote the company performance improvement;(2)the improvement of external governance environment will promote the internal control influence on corporate performance,marketization index is the comprehensive index which reflect the external governance environment quality,the bigger of the index,the better of the external governance environment.This article selects the government and the market relations,market intermediary organizations and the legal system environment index to further verify the hypothesis 2,the results show that the improvement of therelationship between government and market,the improvement of legal system to promote internal control impact on corporate performance.(3)because big difference between regional,the most obvious differences in eastern and western areas.compared with the western region,The eastern region the improvement of external governance environment to promote internal control a greater influence on the performance of the company.