The Research On Influence Of Management Ability On The Remediation Of Internal Control Weakness

Internal control of enterprises is the guarantee for the healthy development of enterprises in accordance with the development strategy,perfect and reliable internal control can prevent potential problems,detect problems in a timely manner,solve problems quickly,improve operational efficiency and effectiveness while reducing risks,reduce economic losses,and safeguard and protect the interests of all parties.Internal control weakness reflect the ineffective internal control of the enterprise,which may cause the enterprise to seriously deviate from the control target,and the remediation of internal control weakness can restore the enterprise to health.As a reflection of the results of human capital output,management ability will not only affect the financial situation of enterprises,but also the key to establishing a internal control system.Management is the implementer of internal control of the enterprise,the impact of management and management ability runs through the entire cycle of design,operation,internal control weakness identification criteria,identification and repair of internal control,internal control weakness are closely related to management.The evaluators and information users of internal control weakness can be mainly divided into internal and external investors and government regulatory authorities.Based on this,it is important for enterprises and investors and the regulatory agencies to study the impact of China's management ability on the major defects of internal control of enterprises.The article first introduces the research background and significance,based on the results of existing research,summarize the main directions and areas of improvement of existing research.Second,define the main concepts,use the data envelopment DEA-Tobit model to measure management ability,use the sign method and the direct method to determine the sample company.Thirdly,supported by human capital management theory,principal-agent theory,stewardship theory,and signal theory,along the path of "the relationship between management ability and internal control defect repair-whether it is affected by the internal control supervision-whether it is affected by the difference in property rights",the relationship between management ability and internal control defect repair is analyzed from multiple angles,and corresponding research is proposed.Assumption,the study selects the Chinese A-share listed company in 2012-2017 as the overall research sample of internal control weakness repair.Afterusing the multiple regression model to study,the results are obtained:(1)the management ability is significantly positively related to the remediation of internal control weakness,that is,the higher the management ability,the better the internal control weakness remediation;(2)compared with the general internal control supervision,when the internal control supervision is strengthened,the relationship between management ability and internal control weakness remediation is more significant.(3)compared with non-state-owned enterprises,the relationship between the management ability of state-owned enterprises and the remediation of internal control weakness is more significant.Finally,based on the research results,suggestions are made to improve the repair of internal control weakness:(1)increase investment in human capital,encourage management to actively participate in benign manager market competition,use competitive recruitment and performance appraisal systems,select high-capacity management to promote internal control weakness remediation;(2)increase internal control weakness and conceal,report the penalties to improve the disclosure of major defects in internal control;(3)relevant government departments and agencies to strengthen internal control supervision and promote the remediation of internal control weakness.