Analysis Of The Influence On The Effectiveness Of Internal Control From CEO Characteristics

With the development of the economy and the occurrence of a series of corporate financial scandals,the bills and guidelines that restrict the behavior of the listed companies have also been published.Taking the Sarbanes act as an example,it has strengthened the confidence of the people and protected the legitimate rights and interests of the investors through the control of a series of risks to the company and the emphasis on internal control..Internal control has also played a more and more critical role in the avoidance and control of risk,and internal control has become one of the most important ways for enterprises to manage and improve the performance of the company.More and more attention is paid to the important role of internal control in China,and further improvement and construction of internal control,the introduction of relevant norms and standards have further improved the establishment of internal control of the company.However,in practical work,the phenomenon of internal control failure is also occurring and even common.For example,the 39 group,Xinhua Pharmaceutical,etc.,it can be seen that domestic enterprises are still facing many difficulties in internal control.In order to improve the confidence of investors and make the capital market run more efficiently,on the one hand,we should continue to improve the laws and regulations.On the other hand,we should constantly improve the internal control of the enterprises in the practical work.Therefore,the research in these areas has also been a great deal,and in these studies,the senior management,especially the CEO,has a greater impact on the establishment of internal control than in the general staff and staff,with the special nature of its position and influence,with greater responsibility,and the individual of CEO.It is necessary to further discuss what personal characteristics of CEO and how these characteristics will affect the internal control of the enterprise.Through the reading and reference of the previous literature,this paper combines a series of relevant theories to explain and analyze,select the characteristics of the three aspects of CEO,and on this basis,consider the property property,empirical test the relationship between the three aspects and internal control,the results are not the same.In this paper,we select five major aspects and 14 subdivision indexes,follow the four principles of scientific,hierarchical,systematic,and operable,and establish a system to evaluate the effectiveness of internal control.According to the principal component analysis method,the corresponding internal control quality ICQ is calculated with the corresponding variance contribution rate as the weight,which is used as the article.The explanatory variable.At the same time,this paper selects three CEO features as the explanatory variables of this article,and proposes three main assumptions of this article.They are whether CEO owns the title of accounting,finance or management,whether CEO holds other positions in other enterprises and the term of the term of CEO.On this basis,this paper takes the data of the listed company of A shares of Shanghai stock market for 2012-2015 years as the sample,constructs the correlation multiple regression model to carry on the empirical test,and draws the corresponding conclusions and policy suggestions.Through the reading and reference of the previous literature,this paper combines a series of relevant theories to explain and analyze,select the characteristics of the three aspects of CEO,and on this basis,consider the property property,empirical test the relationship between the three aspects and internal control,the results are not the same.In this paper,we select five major aspects and 14 subdivision indexes,follow the four principles of scientific,hierarchical,systematic,and operable,and establish a system to evaluate the effectiveness of internal control.According to the principal component analysis method,the corresponding internal control quality ICQ is calculated with the corresponding variance contribution rate as the weight,which is used as the article.The explanatory variable.At the same time,this paper selects three CEO features as the explanatory variables of this article,and proposes three main assumptions of this article.They are whether CEO owns the title of accounting,finance or management,whether CEO holds other positions in other enterprises and the term of the term of CEO.On this basis,this paper takes the data of the listed company of A shares of Shanghai stock market for 2012-2015 years as the sample,constructs the correlation multiple regression model to carry on the empirical test,and draws the corresponding conclusions and policy suggestions.Therefore,enterprises should: first,to extend the tenure of CEO in order to ensure the effectiveness of internal control;second,to allow CEO to work part-time in other enterprises,so that CEO can absorb the length of others,make up for the work experience and accumulation,and establish and establish a more perfect internal control in the actual work.Finally,the CEO with advanced titles will be selected so that it can improve the professional quality of enterprises and make more strategic decisions in line with the future development of enterprises.