A Study On The Effect Of Perks On Enterprise Performance Based On The Role Of Internal Control

The development of productivity and the improvement of science and technology bring fundamental changes in the domestic economic situation.However,along with the rapid rise of various kinds of things,a large number of social issues are also gradually exposed,such as perks.In fact,in any country or region,the perks phenomenon exists in the company,which is especially serious in our country.These problems have aroused widespread concern from all walks of life.The public has been denouncing the behavior of executives using their own power to seek private benefits.However,for the economic consequences of the perks,there is not yet a unanimous conclusion in academia.And the study of excessive perks is relative lack.Therefore,it is of great theoretical and practical significance to strengthen the study of perks on enterprise performance.The promulgation of the Sarbanes-Oxley Act in the United States and the promulgation of relevant regulations on internal control of our country set off an upsurge in the study of internal control.Internal control is the internal mechanism of self-regulation and self-restriction of enterprise production and operation activities,and it is in the important position of the central nervous system of the enterprise.Based on this,this paper further analyzes the impact of internal control on the relationship between excessive perks and corporate performance.On the basis of reviewing the relevant literature,the paper selects all listed companies as research samples,examines the impact of perks on corporate performance,and the regulatory role of internal control on excessive perks and corporate performance.The results show that there is a significant positive correlation between normal perks and corporate performance but a significant negative correlation between excessive perks and corporate performance of listed companies.Internal control can effectively alleviate the adverse effects of excessive perks on corporate performance.In different ownership rights,the regulatory role of internal control is different.In non-state-owned enterprises,internal control plays a more significant role in regulating excessive perks and enterprise performance.Therefore,the listed companies in China should grasp the "degree" of the perks and take the means of governance to prevent the excessive perks of management.On the other hand,the companies should improve the construction of internal control system so as to effectively reduce the impact of excessive perks on enterprise performance.