Internal Control,External Governance And Executive Corruption

With the deepening of social media,corruption incidents have been exposed one after another,and the corruption of enterprise executives is becoming more and more serious,which has become the focus of attention of all sectors of society.Some scholars have described executive corruption as "heroin" of economic development,which not only hinders the steady growth of enterprise performance,but also restricts the healthy development of social economy.For the healthy development of enterprises,the harmony and stability of society,and the governance of corruption cannot be delayed.At present,the governance and prevention of corporate executive corruption has become a challenge for enterprises,capital markets and the government.Internal control runs through the whole business management process of enterprises,promotes the legitimacy and compliance of business activities.It is an advanced concept in modern enterprise management and plays an important role in corporate governance.Therefore,it should also play a corresponding role in the management of corruption among senior managers.External governance is an indispensable path in the two paths of corporate governance.Its objectivity and compulsion have certain binding force in supervising and standardizing the behavior of enterprise executives,and make up for the deficiencies of internal governance.However,at present,the research on top management corruption is mostly focused on the internal governance of the company,and less on the impact of external governance mechanism on top management corruption.Therefore,from the perspective of internal control,this paper discusses the impact of internal control and external governance factors on senior management corruption.This article uses the 2011-2016 A-share listed company as the research object.After defining the concepts of executive corruption and external governance,this paper makes a theoretical analysis,and then tests whether internal control and external governance can inhibit executive corruption through empirical test,andfurther examines the impact of internal control and external governance factors on executive corruption.o provide reference for enterprises in improving the corruption of senior executives and strengthening corporate governance.The empirical results show that:(1)internal control can inhibit the corruption of senior executives;(2)debt constraint has no inhibiting effect on executive corruption;Moreover,there is a substitution relationship between internal control and debt constraint on executive corruption.(3)product market competition can inhibit executive corruption;Moreover,the internal control and product market competition have complementary relations to inhibit executive corruption.(4)the legal environment does not significantly inhibit the corruption of corporate executives;But the internal control and the legal environment have complementary relations to restrain the executive corruption.(5)The role of government intervention in suppressing corporate executive corruption is not significant;and the complementary role of internal control and government reduction interventions to curb executive corruption is not significant.