Executive Political Background,Internal Control And Executive’s Corruption

Since the 18 th National Congress of the Communist Party of China,the central government has set off an unprecedented anti-corruption storm across the country.The Central Commission for Discipline Inspection has continuously strengthened its anti-corruption efforts to investigate and deal with the corruption of various government departments and state-owned enterprise officials.In the process,a series of corruption cases involving officials broke out in our country,including not only government officials,but also a large number of state-owned enterprise officials involved in the case.With the continuous deepening of anti-corruption actions,the public has not only paid a high degree of attention to the corruption of government officials,but also began to pay attention to the corruption of corporate executives.In this context,professionals from all walks of life have conducted in-depth research on executive corruption,exploring the causes of corruption and the economic consequences.In addition,with the continuous reform of China’s market economic system,more and more government officials began to enter the listed companies as senior executives.Or for various purposes such as tax incentives and government subsidies,corporate executives have also begun to establish relationships with the government through campaign committee representatives.The establishment of such political connections is often accompanied by the occurrence of rent-seeking activities.In the process of rent-seeking,enterprises or individuals seek benefits for themselves through bribery and lobbying,and then executives are corrupt.Internal control is a hot issue in the current society.Internal control is an important guarantee for the sustainable and effective development of enterprises,and is usually embedded in various social connections and corporate interactions.At present,scholars at home and abroad believe that there is an inseparable relationship between internal control and executive corruption.Internal control can engage in the three dimensions of pre-event,in-event,and post-event to influence executive corruption.According to the "economic man" hypothesis in the principal-agent theory,the management of the company may,for the sake of maximizing its own interests,may make things that deviate from the interests of shareholders,thus creating a series of agency problems.The occurrence of executive corruption is one of them.The embodiment of the agency problem.The establishment of the internal control system of the enterprise provides appropriate and reasonable supervision and incentive mechanism for enterprise management.With the advancement of various internal control norms and guidelines in China,the quality of China’s internal control is gradually improving,which has continuously promoted the development of enterprises and solved many problems arising in the process of enterprise development.Based on the political background of executives,this paper takes the 2012-2016 A-share listed companies as a research sample to study the relationship between executive political background,internal control and executive corruption.In the research process,this paper divides executive corruption into explicit corruption and implicit corruption,and examines the relationship between executive political background and executive corruption,internal control and executive corruption.In the research process,according to the nature of property rights,this paper divides the sample into descriptive statistics and regression analysis,and studies the difference in the mechanism of action between the variables in state-owned enterprises and private enterprises.At the same time,based on the integration perspective,this paper also examines the role of internal control in the positive relationship between executive political background and executive corruption.The results of this paper indicate that:(1)the political background of executives will exacerbate the explicit and implicit corruption of executives;(2)effective internal control can inhibit the occurrence of executive corruption;(3)effective internal control can Suppress the positive effect of executive political background on executive corruption.Among them,internal control as an intermediate variable,the regulatory effect on executive political background and explicit corruption,is more significant than the adjustment of executive political background and implicit corruption.Based on previous researches,this paper makes the following innovations: Firstly,this paper innovatively studies the relationship between executive political background and executive corruption,which is rarely involved in previous research fields.Secondly,this paper is based on integration.From the perspective of studying the mechanism of internal control,executive political background and executive corruption,it not only broadens the path of prevention and control of executive corruption,but also affirms the importance of internal control and enriches the research of executive corruption.