Research On The Governance Of Internal Control On Position-Related Consumption

Under the background of the 18 th National Congress of the Communist Party of China put forward an anti-corruption campaign,the huge and abnormal position-related consumption of state-owned listed companies executive is frequently exposed.The scope of excess position-related consumption not only affects the development of the enterprise,also harm the social justice.Because of this,It is very important to study the mechanism and countermeasures of excessive position-related consumption in the management of state-owned enterprises.Too concentrated management positions cause excessive position-related consumption,internal control is an effective institutional arrangement for the restriction of power,then it is worth exploring whether the excessive position-related consumption caused by management power can be controlled through internal control.Based on the above considerations,this paper uses the empirical research method to explore the influence and mechanism of internal control on management power and position-related consumption.The research of this paper has found an effective way to restrain the excess position-related consumption of management-internal control,and it is helpful for Chinese enterprises to improve the internal control system by relying on internal control to restrain excessive position-related consumption,further improve the quality of internal control and promote the long-term development of enterprises.Based on data concerning A share in Shanghai and Shenzhen of listed companies from 2012 to 2015,there are 1512 samples observations in this paper and theoretical analysis and research is carried out be centering on restriction problem of internal control of position-related Consumption in listed companies and according to the idea about the relation of management power-internal control-position-related consumption.Firstly,reorganize literature and conclude and collect relevant data,based on a comprehensive overview of domestic and foreign researches,reestablish relationship between management power,internal control,position-related consumption of listed companies.Secondly,we provided theoretical support for the following research hypothesis and empirical analysis based on principal agent theory and incomplete contract theory.we deeply analyze the relationship between management power and corruption under the management power theory framework,and investigate the influence of internal control on that relationship.Thirdly,analyze influencing mechanism of internal control of listed companies on position-related consumption of executives,put forward targeted suggestions and main measures,so as to promote further improvement of internal control mechanism.The results show that excessive position-related consumption is positively related to management power,and negatively related to internal control.On the condition that the management power is more centered,the effect of internal control over the Position-related consumption will not be apparent.And internal control can also mitigate the influence of management power on excessive position-related consumption.Contribution of this paper lies: internal control is taken as entry point of research in this paper and the constraint and control mechanism of internal control on position-related consumption is discussed.In order to take for effective management to governance position-related consumption of middle and executives in operating management activities of listed companies.