Research On The Relationship Between Internal Control,Corporate Social Responsibility And Financial Performance

Internal control is the core content of enterprise value management and risk management.The level of internal control is related to whether the enterprise value can be maximized and the realization of sustainable development.At present,some enterprises unilaterally pursue the maximization of their own economic benefits in the process of development,but neglect the social responsibility that enterprises should bear,resulting in a series of social problems.Internal control factors play an important role in the performance of corporate social responsibility,and the failure of internal control leads to the lack of awareness of social responsibility.In the Company Law,it has clearly required the company to shoulder social responsibility,and the specific responsibility target has been clearly pointed out in the guidance for the Application of Enterprise Internal Control.However,due to the lack of theoretical research on the influencing factors and the realization mechanism of corporate social responsibility,it has become a stumbling block that hinders Chinese enterprises to assume social responsibility and realize the harmonious development of society.Therefore,it is necessary to link the internal control,financial performance and corporate social responsibility,and study the correlation between them.This article selects the listed companies in Shanghai and Shenzhen stock markets as the research samples from 2012 to 2016,screening 1891 observation samples,and constructing the intermediary effect model of "internal control-financial performance-corporate social responsibility".The contents of the three parts are unified and summarized into a whole frame model for analysis,using the way of " characteristics-behavior-conclusion " thinking to study how internal control affects the performance of social responsibility,establish a path model,take financial performance as intermediary variable,analyze internal control's influence on financial performance,and then influence the mutual transmission relationship of social responsibility.Using Bootstrap method to verify the intermediary effect of financial performance.Through the study,it is found that effective internal control has a good role in promoting enterprises to fulfill their social responsibility.The risk assessment factors in the five elements of internal control have the most significant impact on corporate social responsibility,and internal control has a significant impact on financial performance.At the same time,financial performance plays a good intermediary effect between internal control and corporate social responsibility.Last but not least,on the basis of the conclusions of the empirical study,this paper is for the construction of internal control of listed companies in China.The improvement of financial performance provides constructive suggestions to improve the performance of corporate social responsibility.At the same time,it points out the future research direction.