Corporate Governance Characteristics And Repair Of Internal Control Defects

The existence of internal control defects will make the company’s internal control objectives deviate from expectations,which will bring bad consequences to the company,which is not conducive to the development of the company,and the relevant characteristics of corporate governance will have certain impact on the repair of internal control defects.This paper has an impact on both corporate governance characteristics and the repair of internal control deficiencies.Under the two research methods of literature research and empirical analysis,based on the theory of principal-agent theory,information asymmetry theory and signal transmission theory,this paper selects the internal control defects in Shanghai-Shenzhen listed companies from 2015 to 2017.The company,based on certain rejection criteria,150 per year,obtained 450 samples and used the tools such as SPSS and Excel to sort and empirically analyze the sample data.Through empirical research,the paper concludes that except for the size of the board of directors and the combination of the chairman and the general manager,the two variables are insignificant,and other variables are significantly related.Among them,in the aspect of ownership structure characteristics,the nature of shareholder is positively related to the repair of internal control defects.It is assumed that through inspection,the diligence of the board of directors is positively related to the repair of internal control defects,which is consistent with the assumptions.The size of the board of directors and the repair of internal control defects are in a "U"-type relationship,consistent with the assumptions.In terms of the characteristics of the board of supervisors,the shareholding ratio of the board of supervisors is positively related to the repair of internal control defects,which is consistent with the assumptions.In the case of the audit committee,the size of the audit committee is positively correlated with the repair of internal control deficiencies,consistent with the assumptions.In terms of ownership structure characteristics,equity concentration is negatively correlated with the repair of internal control defects,which is inconsistent with the assumptions;in terms of board characteristics,the number of board meetings is negatively correlated with the repair of internal control defects,which is inconsistent with the assumptions;The management shareholding ratio is negatively correlated with the repair of internal control defects,which is inconsistent with the assumptions.On the one hand,this paper enriches relevant research on corporate governance and internal control.On the other hand,it has certain guiding significance for the construction and improvement of internal control,which is conducive to improving its internal control from the perspective of corporate governance,thus promoting the development of the company.