A Research On Property Right Character,Equity Restriction Degree And The Effectiveness Of Internal Control For The Steel Industry

Since the economic crisis,the enterprise internal control getting more attention from people.There are many factors that can interfere with effectiveness of internal control.As the basic part of the corporate governance structure,property right character and equity restriction will also interfere with internal control effectiveness.Steel industry is a significant part of national traditional manufacture,and many companies in this industry were controlled by government.So we select the iron and steel industry as the object of study.This paper contains theoretical and empirical part.In theoretical part introduces the connotation of equity restriction and related theories,then expounds on the internal control and internal control effectiveness related theory,and introduces several evaluation methods to measure the effectiveness,and the system background of internal control.Finally,the paper will analyzes the equity restriction degree will have what effect on internal control.Another part of the paper,we collected the data of listed steel industry companies from 2011 to 2013 in Wind database,and use the data as sample.We proposed two hypotheses about equity restriction degree's and the property right character's correlations with induced variable.We use internal-control index which was establish by professor Chen as the induced variable and choose several manipulated variables,and modeling,the empirical result shows that the equity restriction and property right character are both positively correlation with the internal control efficiency of the department,and the result of robustness testing is also the same.According to the empirical conclusion,we can present proposal from some aspects,one is to strength system-building of internal control,another is to increase the equity restriction degree.United the those two main parts,we discussed the influence that equity structure has caused to internal control effectiveness,then came up with proposal of perfecting the control which may be serviceable to boost the effectiveness of the internal control of steel industry.The suggestions have certain practical meaning.