Female Executives,Marketization And Internal Control Deficiencies

With the continuous improvement of national education level and fairness,women's advantages in education are constantly emerging.Female business managers have quietly emerged.With their unique advantages,they have played an increasingly important role in the business,and become a new force cannot be ignored.After the promulgation of “The Basic Standards for Corporate Internal Control” and its supporting guidelines,enterprise management and employees began to attach importance to the construction of internal control,and as an important aspect of internal control evaluation,the defect of internal control has also attracted wide attention of all parties.In the process of establishing the internal control framework,the senior executives have a profound influence on the design and operation of the internal control system of the company,and become the key to determining whether the internal control operation is effective.Due to the differences between women and men in the way of thinking and internal characteristics,female executives have adopted risk management,careful decision-making and careful management philosophy.These factors will affect the attitude of female executives towards internal control and they will play a role on the disclosure of corporate internal control defects.In addition,although China's socialist market-oriented development has made some achievements after the reform and opening up,it has been affected by various factors and the degree of marketization in various regions cannot reach a balance.In response to this problem,this paper further considers whether female executives will have a difference in the impact of internal control deficiencies in different areas of marketization.This paper analyzes the influence of female executives' characteristics on the internal control defects of listed companies through empirical research,and uses the marketization process to adjust it considering the different levels of marketization in different regions.Using STATA regression analysis and adjustment effect regression analysis,this paper puts forward the conclusions and puts forward their own suggestions for the optimization of female executives of listed companies in different regions of the marketoriented process.First of all,we will sort out the existing achievements in the study of female executives,marketization degree and internal control defects of the results,and determine the research direction of this paper.Secondly,starting from the top echelon theory,human capital theory,principal-agent theory and information asymmetry theory,this paper deduces that female executives can reduce the defects of internal control,and determines the theoretical basis of this paper.The research hypothesis of this paper is put forward and the theoretical model suitable for this paper is constructed.Thirdly,the 5643 a-share companies listed in Shanghai and Shenzhen stock exchange from 2012 to 2016 were selected as samples.Through theoretical analysis and empirical test,the proportion of female executives,female served as chief financial officer and women served as chairman of the board of directors in reducing the role of internal control defects were studied in depth.In addition,this paper introduces the degree of marketization index to investigate whether the index has a regulatory effect between female executives and internal control defects.And we use internal control quality as a substitute variable of internal control defects for robustness test.The results are as follows:(1)there is a significant correlation between female executives and internal control defects.(2)the degree of marketization has a significant regulatory effect between female executives' characteristics and internal control defects.(3)the size of the company,whether it is a loss,the independence of the board of directors and internal control defects are significantly positively correlated.The growth of the company,the compensation of the executives and internal control defects are significantly negatively correlated.Finally,according to the results of the empirical study,the author suggests that enterprises should start with the characteristics of female senior management,and put forward measures to reduce the defects of internal control in three aspects of female senior management proportion,female chief financial officer and female chairman of the board of directors,so as to strengthen the construction of internal control system in multiple ways and improve the efficiency of internal control.At the same time strengthen external supervision,and urge enterprises to improve the quality of internal control.The innovation of this paper is based on the existing research results,combined with the characteristics of listed companies in China,from female executives proportion of the top management team,female chief financial officer and female chairman of the board to build female executives characteristics.This paper expands the research scope of female executives,and the relationship between female executives and internal control are studied in depth.At the same time,this paper further analyzes the impact of female executives on internal control deficiencies of enterprises from the perspective of marketization.