| Since 2002,when the us enacted the famous Sarbanes-Oxley Act,people have come to understand the importance of internal control to companies.Internal control can prevent enterprise risk,protect enterprise assets and improve the quality of management.China has also gradually stepped up monitoring of its internal controls.In order to encourage enterprises to establish an internal control standard system,the government has promulgated a series of laws and regulations,such as the basic rules of internal control of enterprises and guidelines on internal control of enterprises.With the continuous improvement of the legal system of internal control,the internal control problem of enterprises has been controlled to a certain extent,but the failure of internal control has not been eliminated.The problems of accounting fraud,financial fraud and enterprise management are still outstanding,such as the financial fraud in the Great Northern Wilderness,the audit of China and the sea and so on.Therefore,domestic and foreign scholars have carried out a lot of research on internal control,and there have been many researches on the influencing factors of internal control.Although the implementation of internal control system needs all members' efforts,executives in enterprises play a leading role and have an important influence on the quality of internal control.The background characteristics of senior executives reflect their psychological characteristics such as values and cognition.According to the high-level echelon theory,executives' psychological characteristics such as values and cognition decide their behavior decisions.This ultimately affects the internal control of the enterprise.On the other hand,considering the particularity of the background system in China,the demand for executives is different from those with different property rights,so there are some differences in the characteristics of TMT.Therefore,based on the consideration of the nature of enterprise property right,this paper studies the influence of executives' background characteristics on the quality of internal control,which can provide theoretical basis for selecting senior executives and improve the quality of internal control.This paper selects the 2016 Shanghai and Shenzhen listed companies as the research object,the effectiveness of internal control as the explanatory variable,the board of directors,supervisors and senior management personnel of the age,gender,education,tenure as explanatory variables,and the combination of corporate governance,operating characteristics and financial condition of the selected company size,growth opportunity,profitability,equity concentration and financial leverage as control variables.In this paper,a regression model is established to make an empirical study on thecorrelation between the executive background characteristics and the quality of internal control.The results show that there is a significant correlation between the executive background characteristics and the internal control quality of the listed companies.Specifically,senior managers' age,education and tenure are positively related to the quality of internal control.The proportion of female executives is positively related to the effectiveness of internal control,but not significantly.In state-owned enterprises and non-state-owned enterprises,the influence of senior executives' background characteristics on internal control quality is different.In non-state-owned enterprises,the academic qualifications and tenure of senior executives have a greater impact on the quality of internal control.In this paper,the south wind chemical industry and Shanghai daily chemistry are selected as the Sample Firms,and the influence of executive background features on the internal control quality of the enterprises is compared and analyzed.Finally,based on the conclusions of this study,this paper puts forward some Suggestions for improving the effectiveness of internal control. |
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