Research On Effect Of Internal Control Elements On Enterprise Value Of NEEQ Listed Companies From 2014 To 2016

In 2016,a series of violations occurred in the NEEQ(National Equities Exchange and Quotations).The controller of Ginyo Transport Facilities was suspected of bribery,the chairman of Space time group Limited misappropriated funds,and the director of the youtai electric company escaped because of operating illegally.These problems affect the judgments of investors on the value of the NEEQ listed companies.As the expanding of the market scale,the NEEQ will play an irreplaceable role in the Chinese capital market.Especially in 2014,the expansion of the NEEQ and the improving of related laws make the market scale and enterprise quality improve by leaps and bounds,which attracts attention form a large number of investors.To be a rational investor,we should pay attention to the potential of the NEEQ to create value,choose more suitable evaluation methods,find the undervalued enterprises and make effective investment.At present,there are lots of domestic and foreign research results of internal control and corporate value relationships.The foreign scholars are divided into two factions,one part of them believe that internal control is positively related to enterprise value,but the other part believe the opposite.Most domestic scholars believe that internal control is significantly positively correlated with corporate value.However,these studies are mostly based on the main board market and the central enterprises,the empirical research on the relationship between internal control and enterprise value of the NEEQ is almost falling behind,which could not provide enough theoretical guidance for investors in the NEEQ.In recent years,the NEEQ is in a stage of rapid development,the information disclosure system is increasingly perfect,and the data base accumulated.For a detailed analysis of the relationship between internal control and enterprise value,this paper start the analysis from the control environment,risk assessment,control activities,information and communication and supervision these five factors.The first chapter of this paper describes the background and significance,content and framework,ideas and innovation points.The second chapter is a review of existing literature on the relationship of internal control and enterprise value,elaborating the development trend of internal control research topic in recent years.On the basis of previous studies,we rebuild the comprehensive evaluation of internal control indicators which suit to the NEEQ,and recalculate the enterprise value,combine the internal control evaluation index and value index of enterprise elements to build the regression model in the third chapter.The comprehensive evaluation index of the five elements of internal control and the enterprise value index are regressed respectively to explore the relationship between each internal control factor and enterprise value of the NEEQ.Finally,based on the conclusion of theoretical analysis and empirical results,starting from factors significantly associated with the enterprise value,such as to improve the internal control environment,strengthen risk assessment,and several aspects of strengthening supervision efforts to enhance the enterprise value.At the same time,we can not ignore other factors that make the empirical research results not obvious,but still may have an impact on the value of the enterprise.The main conclusions of this paper:(1)control environment presents a notable positive correlation with the enterprise value;(2)risk assessment presents a notable positive correlation with the enterprise value;(3)supervision factors presents a notable positive correlation with enterprise value;(4)the relationship between control activity,information and communication and enterprise value is not significant.The innovations of this paper are as follows:(1)innovation of research angle: the research was based on the data of NEEQ.At present,there are a lot of research results on the correlation between internal control factors and enterprise value,but most of them were based on the Main Board,and the research based on the NEEQ is extremely rare.(2)innovation of research methods: we established a unique model suitable for the NEEQ.At present,the domestic research on the internal control of the NEEQ mostly choose normative research and case analysis method.According to the actual situation of the NEEQ,we build a more suitable comprehensive evaluation system.This set of comprehensive evaluation index of internal control factors for the NEEQ listed enterprises is a great innovation of this paper.