The Effect Of General Manager Degree Of Independence On The Effectiveness Of Internal Control

China's Ministry of Finance and other five ministries have jointly issued the "basic norms of internal control" in 2006 and the corresponding supporting guidelines to jointly build China's internal control system.The issue of the effectiveness of internal control is placed in front of the practical and theoretical circles.The internal control specification states that one of the elements of internal control is the control environment,which includes corporate governance.With the development of corporate governance theory and practice,the logical starting point of corporate governance research has also evolved from the decentralized equity to the controlling shareholder model.And the general manager is the principal shareholder of the agent,but also the internal control of the development.In this case,we are concerned about whether the degree of independence between the general manager and the major shareholder will have an impact on the effectiveness of internal control.This article will study and solve this problem.In this paper,we select the Shanghai-Shenzhen A-share companies from 2013 to 2015 as the research sample data,divide the general managers into the identical type,the affiliated type and the independent type according to the heterogeneity of the general manager degree of independence.On this basis,we test the different types of general managers Effect on the effectiveness of internal control.After that,we add two adjustment variables: equity balance and general manager salary level,and explain the main external environmental factors and their influencing mechanisms that influence the heterogeneity of independence of independent managers on the effectiveness of internal control.In this paper,we find that the degree of independence of general manager is positively correlated with the effectiveness of internal control.Different degree of independence of the general manager use the attitude of the emptiness of large shareholders and the desire to seek other non-normal economic interests to influence the effectiveness of internal control.After introducing the two regulatory variables of the equity balance and the salary level of the general manager,the study found that the higher the equity balance,the stronger the positive correlation between the degree of independence of general manager and the effectiveness of internal control.The higher the salary level of general manager,the stronger the positive correlation between the degree of independence of general manager and the effectiveness of internal control.The conclusion of the study provides a theoretical basis for improving the effectiveness of internal control,and enables the enterprises to seek suitable manager selection mechanism from the perspective of independence and optimize the path of the general manager of listed companies.At the same time,it has strong guiding significance for optimizing the ownership structure and establishing a more reasonable remuneration incentive system,improving the independence of the general manager and ensuring the effectiveness of the internal control of the listed company to exert more positive corporate governance.