| In response to the requirements of the Basic Standard for Enterprise Internal Control issued by the Ministry of Finance and other five ministries in 2008,the listed companies need to self-evaluate the effectiveness of the company’s internal control system and disclose the annual self-evaluation report,which is also conducive to improving the listing of our country The company’s internal control system to promote the efficiency of internal control to play.Of course,the existence of corporate Internal Control Material Weaknesses will be disclosed,which also means that the information on business problems will be passed to the market,which is certainly not conducive to the development of enterprises,then Institutional investors will also avoid the business,to reduce the financial support for enterprises.At this time,as a rational economic person,it will compare the cost of repairing the Internal Control Material Weaknesses and the loss caused by the Internal Control Material Weaknesses,and then choose to repair the Internal Control Material Weaknesses in time to rebuild the confidence of institutional investors to attract institutional investment The investment.Because institutional investors in the development of enterprises has a very important role in the process,mainly in the institutional investors with professional knowledge and a solid financial foundation,to a large extent improve the company’s governance efficiency;and institutional investors in the Alleviate the contradictions of agents,protect the interests of small and medium investors,reduce the risk of information asymmetry,reduce the cost of equity also plays an irreplaceable role.In this paper,the Internal Control Material Weaknesses and Remediation of the Internal Control Material Weaknesses as the impact of institutional investors related factors in the review and evaluation of domestic and international internal control deficiencies and its repair on the impact of institutional investors on the basis of the principal and corporate governance Theory,information asymmetry theory,signal transmission theory and so on to discuss the impact of internal control deficiencies and their repairs on the proportion of institutional investors holdings,it can enrich the existing theories and empirical studies about the Internal Control Material Weaknesses and remediation of the Internal Control Material Weaknesses;in reality,it can improve emphasis on internal control of enterprise,promote the internal control weakness can be remediated in time.It has important theoretical and realistic significance.The innovation of this paper is the subdivision of the Internal Control Material Weaknesses and the measurement of the Remediation of the Internal Control Material Weaknesses,explore the influence of behavior of institution investors through the combination of static and dynamic way.The empirical data of the listed companies with the defects of the internal control deficiencies of the SSE A and Shenzhen A shares in 2014 and 2015 are selected as the sample,analysis the data by multiple linear regression method,including descriptive statistical analysis,correlation analysis and regression analysis.The results show that the institutional investors will reduce the proportion of holdings obviously when the internal control deficiencies exist.After the internal control defects are repaired in time,the institutional investors will increase the proportion of the shares,but,it is not obviously.According to the research results,this paper puts forward some policy suggestions from three aspects: First,the enterprise should improve the internal control system and reduce the existence of the Internal Control Material Weaknesses;Second,enterprises should improve the self-discovery and error correction mechanism to improve the efficiency of internal control defect repair;Third,it is necessary to regulate the behavior of institutional investors and improve their behavior patterns. |
PDF Full Text Request