Research On Sme Board-Listed Companies’ Internal Control And Growth

Small and medium-sized enterprises play an important role in economic and society development.At the same time,the relatively high mortality rate of the small and medium-sized enterprises should be given attention to.One of the main external problems restricting the development of small and medium-sized enterprises is financing.The government has set up a small and medium-sized enterprises board to build a good external environment to settle it.However,small and medium-sized enterprises need to pay more attention to improve their own quality if they want to continue to grow.As the most important factor,to some extent,of the enterprise scientific management,internal control counts a lot to improve comprehensive self-quality,unfortunately,there are many deficiencies in the internal control of small and medium-sized enterprise leading to low efficiency management and disability to cope with risks.It is hard to survive in the fierce competition,not to mention the target of achieving sustainable growth and development.The paper analyzes and teases the present situation of research related to internal control and enterprise growth based on studying important theory.Then,this paper defines the relevant conception and does preliminary research about the status of the SME board listed companies’ internal control and growth respectively.On that basis,theoretical analysis and research hypothesis about internal control and growth are proposed,meanwhile,agency cost and investment efficiency are given as intermediary variables.Then this paper chooses the panel data of 481 China’s SME board listed companies from 2011 to 2015 as sample for empirical analysis.The indexes are designed as follows: 13 indexes are chosen based on correlation and reliability to measure disclosure quality of internal control information,expense ratio is chosen to measure agency cost,investment efficiency is calculated by the Richardson model.17 indexes are designed from the perspective of both financial and non-financial to evaluate the growth.Combined with some conventional control variables,empirical research models are built based on theoretical analysis.In the part of empirical research,this paper calculates all the necessary data firstly.Secondly,descriptive statistics are given to get a preliminary understanding of variables.Thirdly,preliminary validation is made by the method of correlation analysis.Finally,empirical validation is finished through regression analysis and mediation effect analysis.The conclusions are as follows: internal control information disclosure quality and growth are positively correlated,but not significantly;internal control quality and growth are significantly positively correlated;agency cost and investment efficiency play partial intermediary effect.In final chapter,this paper summarizes the conclusions,and then give some countermeasures and suggestion from the perspective of regulators,managers and investors to improve the construction of internal control.At the same time,this paper points out the deficiencies in the process of research,and suggests the direction as a reference for further research.