A Study On The Compliance Of The Use And Disclosure Of Goverment Grants

Government grants,as a free economic aid for government departments,has a great impact on the development of enterprises.In recent years,the total amount of government grants has increased rapidly every year,and the number of subsidized enterprises has also risen rapidly.According to statistics,the number of subsidized enterprises in listed companies has reached more than 90% of the total.However,there are many problems in the process of using and disclosing government grants.Departments such as the Ministry of finance,the national audit office of the people's republic of China and the SFC have repeatedly reported and punished the enterprises that defrauded,misappropriated and embezzled government grants.But these problems are still repeated.As one of the effective measures to improve enterprise management,internal control aims at guaranteeing the legal compliance of the enterprise,maintaining the security of assets,ensuring the truth of financial report and the related information.It may have influence on the compliance of the use and disclosure of government grants.In order to clarify the relationship between internal control and the compliance of the use and disclosure of government grants,this paper selects the A shares listed companies in 2013-2016 as samples to examine the relationship between internal control and the compliance of the disclosure of government grants.And this paper also selects typical case to analyze the relationship between internal control and the compliance of the use of government grants.Firstly,this paper studies the relationship between internal control and the compliance of disclosure of government subsidy by empirical analysis.The results show that there is a significant positive correlation between the two.In the study of the five elements of internal control,there is a significant positive correlation between them.After reaching this conclusion,this paper proves the empirical results through case studies.Secondly,this paper studies the internal control and the compliance of the use of government grants in the form of case analysis.The results show that the effectiveness of internal control and the five elements of internal control can improve the compliance of government subsidies.Finally,this paper draws the corresponding conclusions from the empirical results and case summaries,and makes some suggestions from the two angles of the enterprise and the government to improve the compliance of the use and disclosure of government grants.At the same time,the shortcomings and future research prospects of this paper are also discussed.The innovation of this paper is combining the two methods of empirical research and case study to analyze the relationship between internal control and the use of government subsidies and disclosure compliance.At the same time,it further analyzes the influence of the five elements of internal control on the use and disclosure of government subsidies compliance,and enriches the related research.