Research On The Influence Of Informal Institution On Internal Control Of Small And Micro Enterprises

Small and micro enterprises play an important role in China's national economy,which is an important pillar of China's economic sustained growth.Internal control is very important for the healthy and sustained development of enterprises,which is important reason that the ministry strongly develop and continuously improve internal control norms in China,In China,by the policy-oriented and normative guidance,a significant amount of research on internal control of enterprises focus on listed companies and large enterprises,less concerned about medium-sized enterprise and small and micro enterprise.Small and micro enterprises have its particularity.For example,Its main feature is a high degree of unity of ownership and management rights and its employees(especially the important department of the staff)are family members.This kind of family culture environment and the interpersonal relationship between employer and employees make informal institution(relation and face)play an important role and widely exist in the enterprises.Though there is a little research on the relationship between informal institution and internal control in China,it opens the door to understand the informal institution of internal control,but their research is relatively abstract and not specific.What are the manifestations and effects of the informal institution on internal control in the context of Chinese culture?What is the significance of studying the informal institution of internal control for the localization of internal control?These questions also require more specific research.In summary,on the one hand,the small and micro enterprises is very important in the economic and social development of the status,but the research on small micro enterprises' internal control is still very lacking;On the other hand,the special nature of small and micro enterprises makes the informal institution very impact on small and micro enterprises' management and internal control,but the current internal control's research is also less concerned about the informal institution.In view of this,this paper takes A company as an example and uses the case analysis method to study the influence of the informal institution on the internal control of small ad micro enterprises.This paper tries to discuss the informal institutional factors in the internal control of small and micro enterprises in a comprehensive and in-depth way,in order to enrich and develop the research on the internal control of small and micro enterprises,and provide the management level of small micro enterprises.With reference to "Guidelines for the application of enterprise internal control",this paper analyzes the internal control of A company and analyzes the influence of informal institution on internal control from two aspects(internal environment and specific business control).The study found that the informal institution was widespread existed in A company's internal control and played an important role.However,as the company continues to expand,internal controls will move and develop more to the formal institution.This paper argues that the existence and role of the informal institution in internal control and it can'nt be ignored.The informal institution may have a positive or negative impact on internal control;It is needed to make full of the benefits of informal institution and avoid the disadvantages it poses.The internal control theory and practical practices needs more attention to localization factors,and promote local innovation of internal control theory with Chinese characteristics.