Research On The Relationship Among Top Management Characteristics,Internal Control Quality And Corporate Value Of Listed Companies

As technology adapts to the competitive market and continues to develop in all directions,the internal and external environment in which the enterprise is located is constantly changing in order to adapt to the market competition.This kind of change can promote the continuous growth of all walks of life to a certain extent,but at the same time it also threatens the development of the enterprise and makes the enterprise face enormous challenges.In response to the market environment where such opportunities and challenges exist,companies should attach great importance to and actively seize opportunities and meet challenges to maximize self-worth.However,many companies have successively made acts of fraud and fraud because of their own internal management problems,which damages the overall value of the company.Therefore,the government and enterprises should focus on and actively respond to the defects in the internal control system of enterprises.However,in this increasingly updated environment,how to cope with these changes for the company? people can not only play their role through traditional material capital,they need to be more active in their ability to discover the creative capabilities that physical capital can't.So people usually accept the saying that people are a resource.For enterprises,executives,as a kind of people,mainly control and decide on the enterprise by mastering and analyzing key information,thus determining the development path of the enterprise.Therefore,such people are the main resources of the enterprise.They not only have an impact on the internal control construction,but also play a key role in enhancing the company's market value.In reviewing and collating relevant literature,most people explore the relationship between investment efficiency,earnings management,and corporate governance by studying the characteristics of senior managers.Among them,some scholars are researching the connection between executive characteristics and performance results,but due to the influence of institutional environment,economic growth rate,business life cycle,and industry characteristics,the positive and negative influences of the background characteristics of managers on company performance cannot be consistent.The conclusions and even some results show that there is no obvious correlation between the two.For the internal control of enterprises,most scholars consider the evaluation procedures of internal control,influencing factors and possible consequences of economy,and few scholars start from the background characteristics of managers to study the relationship with internal control,making this There are relatively few related literatures,and due to factors such as economic changes in the industry,the current academic field cannot clearly define the scope of executives.As far as the background characteristics of executives and the related literature of the company's values are concerned,scholars cannot make a unified judgment on the relationship between positive and negative influences,not to mention the relationship between innovation and mediation with the research.After sorting out the main existing literature and conducting basic theoretical analysis,the author attempts to use empirical analysis to explore the background characteristics of the executives and the company's value,the positive and negative impact of internal control construction,and the relationship between internal control and company value.And further explore whether the quality of internal control can act as an intermediary between the characteristics of executives and the value of the company,and play the role of intermediary.This paper selects the data of companies in Shanghai and Shenzhen stock A-shares which are already listed from 2014 to 2017,and obtains data of 4422 companies as samples,with the background characteristics of executives as explanatory variables,starting from average age,gender,and term of appointment dimensions,put forward reasonable relevant assumptions and conduct empirical tests.Further,the paper concludes that: Firstly,in the relationship between executive characteristics and company value,the average age,average gender,average term of employment of managers are positively related to company value.Secondly,in the study of the relationship between executive characteristics and internal control quality,the average age,gender,and duration of management personnel are positively promoting the quality of internal control.Thirdly,when analyzing internal control quality and company value,the former is promoting the latter.Fourthly,in the study of the characteristics of executives and the mediating role of corporate value,the quality of internal control acts as an intermediary between executive characteristics(average age,average gender,and average servicing period)and company value.That is,the age,gender,and duration of the executives indirectly affect the value level of the company by affecting the quality level of internal control.This paper uses principal-agent theory,high-level echelon theory,and internal control theory to explore the background characteristics of executives,the relationship between internal control quality and corporate value.Based on the research results simultaneously,this paper puts forward the following suggestions: Firstly,optimize the internal construction of the senior management team.In competition under the same conditions,companies should be more likely to choose women as important positions in the company than men.Also,pay attention to selecting people who are older and longer term of employment.Secondly,the government and various regulatory authorities should strengthen the supervision of internal control of enterprises continuously.The government should conduct real-time supervision on whether the enterprise can operate internal control and other issues in accordance with relevant rules and regulations to ensure that internal control can be implemented effectively.For enterprises with good internal control quality,the government should encourage and provide certain support.Enterprises with poor internal control quality should be punished appropriately and urged to correct them in time.Thirdly,the senior management team should strengthen the construction of internal control and ensure the smooth implementation of the system.In promoting the establishment of internal control,management should play a pioneering role,not only to maintain the internal control to maintain science,but also to ensure the company's own high adaptability,and allow all employees to focus on the internal control of the company so that internal control can be effectively implemented.