Influence Research Of Equity Structure On Corporate Financial Performance:Mediating Role Of Internal Control

As the main body of the capital market,the financial performance of enterprises has always been the focus of attention,and the interrelated ownership structure and the quality of internal control are attracting more and more attention from scholars.The reform of non-tradable shares,which has an important impact on the share structure,has been completed long ago.The problem of corporate governance structure brought by this is also being gradually improved.However,the constantly changing ownership structure brings new challenges to the listed companies,and it is bound to affect the quality of internal control in different degrees,finally it determines the level of financial performance of the enterprise.Therefore,the study of the relationship between the three becomes extremely important.Since October 2018,while noting the importance of "giving full play to the hub function of the capital market",the state has also sent new signals on the reform and development of the capital market."Walking out of the path of financial development with Chinese characteristics" becomes an emphasis on content of the 13 th collective learning meeting of the political bureau of the CPC central committee in February 2019.Based on it,China's capital market will put forward higher requirements for its theoretical development in the next stage.This also provides an opportunity for the theoretical research of this paper.According to the existing literature,most scholars only focus on the direct impact of ownership structure on financial performance.Few scholars have noticed the grafting effect of internal control between ownership structure and financial performance,which is also known as the mediating effect.Therefore,it is of great significance to analyze the internal relations among them.In order to analyze the intermediary transmission effect of internal control between equity structure and financial performance,this paper uses the literature analysis method,deductive method and empirical research method to analyze and implement the company listed on the Shanghai and Shenzhen main boards since 2012.The "Guidelines for Enterprise Internal Control Supporting" is the research background,with equity structure,internal control and financial performance as independent variables,intermediate variables and dependent variables,and the equity structure is measured from three aspects: equity concentration and equity balance As well as the nature of equity,the internal control of the listed company's internal control index(DIB)is used to quantify the financial performance of the company by the total net profit margin(ROA).Selecting 7616 data of Shenzhen and Shanghai A-share listed companies from 2015 to 2017 as research samples,based on principal-agent theory,property rights theory,information transfer theory and incomplete contract theory,respectively analyzing the ownership structure and corporate financial performance and equity structure,internal The respective mechanism relationships between control and financial performance provide support value for the operability of the internal control intermediary effect studied in this paper.In addition,in order to deeply study the intermediary transmission effect of internal control on shareholding structure and financial performance,this paper uses the model built by the article to analyze the relationship between ownership structure,internal control and financial performance,in order to find out the three.The conduction path that exists between them.Based on the previous theories and the mechanism analysis between the variables,according to the empirical research results obtained,the following research conclusions can be obtained:(1)The more concentrated equity structure will benefit the improvement of corporate financial performance.The good equity balance mechanism will bring higher financial performance level to the enterprise,and the financial performance level of the non-state-owned enterprise is higher than that of the state-owned enterprise.High level of financial performance.Therefore,enterprises should optimize the ownership structure,find suitable equity concentration,and form an effective equity balance mechanism.(2)Selecting a more concentrated ownership structure and strengthening the equity check and balance mechanism will benefit the establishment and implementation of the internal control system of the enterprise,thereby helping to improve the quality of internal control of the enterprise;in addition,the internal control of state-owned enterprises with more social responsibilities The quality is higher than the quality of internal control of non-state-owned enterprises.Therefore,the internal corporate governance should focus on the impact of the external environment and the degree of cooperation of national policies to ensure that the improved ownership structure can be conducive to the quality of internal control.(3)Ensuring the high quality operation of internal control is conducive to the improvement of the financial performance level of the enterprise.Therefore,enterprises should pay attention to the construction of internal control quality,improve the internal control system,and improve the effectiveness of internal control.(4)Internal control plays a certain intermediary effect in the relationship between equity concentration and equity balance and financial performance,but the indirect effect between equity nature and financial performance is not significant.Therefore,enterprises should pay attention to the coordinated development of ownership structure and internal control.