Research On The Influence Of Executive Characteristics On The Remediation Of Internal Control Weakness

With the introduction of relevant internal control regulations in China,the construction of the internal control system of most listed companies has achieved initial results,but there is still a long way to go before the system is perfected and optimized.Financial fraud incidents caused by internal control weaknesses still occur from time to time,causing widespread concern in the whole society.Listed companies are also gradually aware of the importance of the remediation of internal control weakness.At present,the remediation of internal control weakness has become one of the key tasks in the construction and improvement of the internal control system of listed companies.Effective remediation of internal control weakness can ensure that the main problems and major risks in the design and operation of internal control are solved and effectively controlled in time,so that the internal control of listed companies plays its due role.As the implementer of the company's strategic decision-making,the company's executives are responsible for the organization and coordination of the whole company.They are the main body of design and implementation of the company's control activities,and bears direct responsibility for the remediation of internal control weakness.Therefore,whether the internal control weakness can be effectively remediated is affected by the choice of executive behavior,and the behavioral choices and performance of the executives are largely influenced by executive characteristics.Executive characteristics will affect the perception,judgment and behavioral motives of the executives themselves,which in turn will influence their behavioral decisions on the remediation of internal control weakness.Therefore,this paper mainly studies the relationship between executives characteristics and the remediation of internal control weakness,and analyzes the influence of executive characteristics on the remediation of internal control weakness.Based on the empirical results,the paper puts forward some suggestions to promote the remediation of internal control weakness from the perspective of executive.The paper studies the relationship between executive characteristics and the remediation of internal control weakness by combining qualitative and quantitative analysis,theoretical analysis and empirical test.The paper first summarizes the related research on the executive characteristics,internal control weakness and their remediation through systematic review,and determines the specific research direction of the paper to ensure the feasibility of this study.Then defining the related concepts of executive,executive characteristics,internal control weakness,the remediation of internal control weakness,etc.,and analyzing the high-level echelon theory,principal-agent theory and internal control theory to determine the mechanism of the influence of executive characteristics on the remediation of internal control weakness.Based on this,the relevant research hypothesis of this paper is put forward.The remediation of internal control is the explanatory variable of the paper,and Taking executives' age,gender,education,political background,tenure,salary,CEO duality,and shareholding ratio as explanatory variables.Taking the listed companies with internal control weakness in the A-share market in 2014 as the research object,and the relevant data of the three years from 2015 to 2017 were selected as the sample of the study,then the multiple regression analysis was carried out on the influence of the executive characteristics on the remediation of internal control weakness.And the regression results were tested for robustness.The regression results show that there is a certain correlation between executive characteristics and the remediation of internal control weakness.Specifically,there is a significant positive correlation between executive education and the remediation of internal control weakness.There is a significant negative correlation between executive gender,executive tenure,executive salary,and internal control defect repair the remediation of internal control weakness.There is no obvious correlation between executive age,political background,CEO duality,shareholding ratio and the remediation of internal control weakness.Based on this,the paper puts forward the following suggestions: appropriately increasing the proportion of female executives;selecting as many highly educated personnel as possible in the recruitment of executives,and providing a certain learning platform to continuously improve the overall quality of all executive members;maintaining the rationality of executive tenure and strengthening supervision of executive;establishing an appropriate and effective salary incentive mechanism,coupled with a sound assessment system to promote the the remediation of internal control weakness.