A Study On The Effect Of Executive Power Allocation Structure On The Effectiveness Of Internal Control

With the rapid development of China's market economy,a series of relevant laws and regulations' s improvment,enterprises are increasingly concerned about the implementation of internal control,and China's internal control development is also more and more progress.The implementation of internal control can improve the management level of the company and enhance the ability to resist and guard against risks,and improve the effectiveness of internal control not only for improving the enterprise management mechanism also for the improvement of modern enterprise system has a very important significance.The existing literature focuses on the relationship between executive power allocation structure and corporate governance and corporate performance,while the relative relevance of internal control effectiveness is relatively small.The establishment of internal control system is closely related to the improvement of corporate governance level,and executives are at the center of corporate governance.Executives not only arrange the company's governance right,but also participate in the formulation and implementation of internal control system.Therefore,the allocation of executive power not only directly affects the distribution of corporate governance elements,the improvement of governance efficiency and efficiency,but also on the internal control of the scientific formulation and effective implementation also have an important impact.Therefore,this paper explores the relationship between the elements of executive power allocation and the effectiveness of internal control from the perspective of influencing the structure of executive power allocation.The company's reasonable executive power allocation structure not only enables the company to choose the right executive leadership,arrange the appropriate team size,but also make the resources play the greatest role,save cost,increase efficiency,improve the internal control system,enhance the internal control of the effectiveness,maximizing the value of the company.Based on the analysis of the configuration of executive power structure and relevant theories,this paper investigates the 2012-2015 companies in Chinese A stock market that are disclosed DIB internal control index to analyze of the effectiveness of internal control by the perspective of power structure.As there are many indicators that constitute the structure of executive power allocation,therefore,this paper analyzes the impact of the control on the effectiveness of internal control from the indicators that influence the allocation structure of executive power.The study found that increasing the concentration of ownership,the proportion of independent directors and the level of education of senior executives help to enhance the effectiveness of internal control.And the size of the board of directors,the number of executive teams and the age of executives are not conducive to the effectiveness of internal control play.Finally,some suggestions are put forward from the institutional level and the internal level of corporate governance.