Research On The Internal Risk Control And The Performance Of State Owned Enterprises

On September 10,2017,Sina Finance reported that the proportion of state-owned enterprises in China's top 500 enterprises was 54.8%.Compared with the private enterprises that have sprung up everywhere,its development has shown a downward trend.As an important carrier to achieve China's macro-control objectives,the performance level of state-owned enterprises or state-owned holding enterprises directly determines the efficiency and effectiveness of the use of state-owned assets.Simple financial performance management has not been able to meet the needs of modern state-owned enterprises.Observing the continuous occurrence of financial fraud in large enterprises at home and abroad(such as the Enron incident,the Lantian stock incident and the Yinguang summer trap incident),the Chinese government has successively introduced policies over the years to increase risk control and internal control to improve corporate governance and transform internal control objectives from traditional financial risk management to company-wide comprehensive risk management.However,in daily management,three issues need to be further tested:1.Is there a positive correlation between performance after the state-owned enterprises are mixed? 2.In the state-owned enterprise environment,are different performance indicators positively or negatively correlated with the risk control level?3.After the reform of state-owned enterprises,does the correlation between different performance indicators and risk control levels change? The verification of these three questions is also the significance of this paper.This paper uses the combination of theoretical analysis and empirical research,starting with theoretical analysis,analyzing the main factors affecting internal control,and the possible relationship with performance,forming hypotheses and establishing models.The logical framework is as follows:Chapter 1 "Introduction",which describes the background,purpose,significance and research methods of this paper,summarizes the relevant literatures at home and abroad,and describes the possible innovations of this paper.The second chapter is “ Analysis of the status quo of risk management and performance of state-owned enterprises”.It summarizes the reality of the reform of state-owned enterprises,risk control and performance.There are very few studies on the relationship between the three,so in the conclusion of this chapter,it is necessary to model and empirically analyze the relationship between the three.The third chapter is "theoretical analysis and model construction".It constructs a mathematical model for the combination of state-owned enterprises' mixed reform,risk management and performance,and first analyzes the mechanism through theory.By introducing "agent theory" and "signal transmission theory",The "control right private benefit hypothesis" and "information asymmetry theory",eight hypotheses are obtained.It is assumed that the risk management and control level is positively correlated with the performance of various enterprises(including financial performance and non-financial performance)before and after the mixed reform of state-owned enterprises.And build a mathematical model.The fourth chapter "Analysis of empirical results",through the "Guotaian database" and "China Economic Network" database selection,2,363 listed companies in Shanghai and Shenzhen Stock Exchanges in 2013-2017,954 Chinese enterprises,1409 non-state enterprises are selected as samples for the construction of the empirical model,the data is validated against the eight hypotheses and tested for stability.Finally,the conclusion of the relationship between the three is obtained.Chapter V "Research Conclusions and Prospects" summarize the results of Chapter V "Research Conclusions and Prospects" summarize the results of empirical research,and provide some suggestions based on the status quo of China's state-owned enterprises,and make some thoughts on the limitations of this research and the future development and prospects of this research direction.This paper strives for innovation in three aspects:(1)Separately screening state-owned enterprises for research,and then combining state-owned enterprises with non-state-owned enterprises to simulate the reform of state-owned enterprises,and obtain the relationship between risk control and various performance indicators before and after the mixed reform of state-owned enterprises.(2)For the definition ofperformance,most other articles in the same field mainly study financial performance,or deliberately blur performance values.This paper refines the performance and conducts the main performance values one by one,which has certain significance for the state-owned enterprises to refine the performance management.(3)This paper uses a mixed linear model to build a model for analysis.Other solid paper models are used in other fields,and the mixed effect model is the most comprehensive method.It is more suitable for the situation in this paper.Through the continuous screening of random effects models,the final fixed effect model is obtained.This method not only pays attention to the individual differences between variables.And finally get a fixed model with better results.At the end of the paper,it is concluded that for state-owned enterprises and mixed reform enterprises,risk control is positively correlated with financial performance,and mixed reform will enhance this positive correlation.For non-financial performance indicators,some indicators have nothing to do with risk control,but are positively correlated in general.Research on the relationship between different performance indicators and risk control is conducive to refining the comprehensive management of state-owned enterprises and enhancing their management ability,clarifying the direction of mixed reform of state-owned enterprises in China and strengthening their determination for mixed reform.