Research On The Influence Of Internal Control And Corporate Social Responsibility On Financial Performance

Under the condition of the new era,the development of social economy is transitioned from high speed growth to high quality development gradually,the construction of ecological civilization is still faced with the challenge,haze weather,the black smelly water,Garbage siege,At the same time,there are frequent incidents that enterprises damage the rights and interests of consumers and other stakeholders in pursuit of low cost.In response to the complex economic situation at home and abroad,it puts forward higher requirements for enterprises in heavy pollution industries to adapt to the complex and changeable external economic environment and improve their own performance.Internal control is an important way to standardize enterprise management,for the enterprise to achieve business objectives to provide security.Because of its profession particularity,Heavy polluting enterprises should not only focus on economic benefits,but also take into account social benefits and ecological benefits.Fulfilling social responsibility is an important management and competition strategy in the market,probably relates to the success or failure of enterprise management.Therefore,it is necessary to study the relationship between internal control,corporate social responsibility and financial performance of heavy polluting enterprises.Combining theoretical analysis and empirical test,this paper summarizes the related literature research,mainly based on the principal-agent theory,stakeholder theory,social contract theory and signaling theory,make the research hypothesis and establish the research models,with Shanghai and Shenzhen A shares in 2014-2018 of heavy pollution industry companies as research samples,through a series of screening and processing,finally have been five years a total of 2530 samples data,studied by using Stata12.0 and Excel for data collection and analysis,adopt Wen Zhonglin intermediary effect inspection procedures.Empirical tests were carried out on the full sample and the sample companies of state-owned enterprises and non-state-owned enterprises divided according to the nature of ownership.Through empirical research,this paper draws the following conclusions :(1)The internal control of enterprises in heavy pollution industries has a positive impact on financial performance;(2)The internal control of enterprises in heavy polluting industries promotes them to fulfill their social responsibilities;(3)Corporate social responsibility of enterprises in heavy pollution industries plays a part in the mediating effect of internal control on financial performance.Internal control can have a positive impact on financial performance by enabling enterprises to fulfill their social responsibilities.There is no mediating effect in state-owned enterprises,while there is partial mediating effect in non-state-owned enterprises.Finally,Suggestions are put forward on the transformation and development of enterprises in heavy pollution industries,internal control construction,corporate social responsibility disclosure and other aspects,so as to provide useful exploration for enterprises in heavy pollution industries to improve their financial performance in practice.