Research On The Influence Of Ownership Structure On The Effectiveness Of Internal Control

In recent years,with the frequent occurrence of financial fraud events and the promulgation of the relevant policy documents,the internal control has attracted more and more attention from enterprises and the society.The establishment of an effective internal control system can reduce the loopholes in the management of enterprises and make activities of the enterprise in accordance with the established rules in an orderly manner.Detecting the hidden dangers to safeguard the interests of shareholders.Therefore,enterprises make efforts to strengthen internal control construction is not only to meet the needs of the external supervision,but also have a positive effect on the development of their own.In order to improve the effectiveness of internal control,we should analyze the factors that affect the effectiveness of internal control.Based on previous studies,we can see that there are a lot of factors,such as corporate governance: board size,proportion of independent directors,the size of the board of supervisors.In addition,the stage of development,scale,profitability and other factors also affect the construction of internal control.In the factors that affect the effectiveness of internal control,the ownership structure has a fundamental impact.The number of shares that shareholders hold and the power balance are reflected in the ownership structure,and ownership structure determines the corporate governance,including the members of the Committees and the allocation of responsibilities and rights,which will affect the construction of internal control system of enterprises.Industry is the foundation of the national economy,we should not only pay attention to accelerate its transformation and upgrading,promote the integration of industry and information technology,but also focus on improving its management capabilities,including the construction of internal control.Therefore,this paper chooses the industrial enterprises as the sample of the study,and studies the influence of ownership structure on the effectiveness of the internal control in detail from the aspects of the shareholding ratio and the strength comparison of the different main body.This paper also studies the mediating effect of shareholder behavior on the effectiveness of internal control,which is innovative.This paper enriches the theoretical and empirical research on internal control.It can provide a reference for the industrial enterprises to explore the reasonable ownership structure and improve the effectiveness of internal control.Therefore,this paper has some significance in theory and practice.In this paper,firstly,I summarize the previous studies,and then define the concept of ownership structure and the effectiveness of internal control.Then,this paper discusses the influence of ownership structure on the effectiveness of internal control and shareholder behavior as well as the mediating effect of shareholder behavior.Then the research hypothesis is put forward.Next,this paper selects the 2013 to 2015 A shares of 1084 listed companies,a total of 3252 sample data.Based on the method of mediation effect,the paper establishes relevant regression model.The empirical results show that:(1)There is a positive correlation between the institutional investors holding shares,management shareholding,tradable shares,equity balance degree and effectiveness the internal control,and the influence is significant.The proportion of state-owned shares and ownership concentration are negatively correlated with the effectiveness of internal control,and the impact is significant.(2)Shareholder behavior plays a partial mediating effect in the process of ownership structure affecting the effectiveness of internal control.Based on the conclusions above,this paper puts forward some suggestions on how to improve the effectiveness of internal control.