Research On The Relationship Among Internal Control,Debt Financing And Enterprise Performance

With the continuous improvement of China's economic system reform,the internal and external environment in which enterprises operate is constantly changing and unpredictable,and the risks they face are more complex.How enterprises can survive and develop healthily and continuously in the current complex economic environment deserves in-depth consideration.The essence of internal control is risk management.Enterprises with good internal control will monitor and control risks.After the supply side structural reform proposed by the central government,the debt financing to increase the financial risk of enterprises has attracted the strong attention of scholars.The survival and development of an enterprise cannot be separated from capital.The internal retained capital of an enterprise is limited.The long-term development must require external financing.Debt financing has the advantages of low cost and does not dilute shareholders' control rights.However,the increase of financial risks and agency costs caused by high debt may have a negative impact on enterprise performance.How to reduce the financial risk and improve the performance of enterprises has been explored for a long time.In the existing literature,there are more researches on the impact of internal control or debt financing on the performance of enterprises,but there are few researches on how internal control affects debt financing.In the context of "deleveraging" policy,this paper studies internal control,debt financing and enterprise performance The correlation of effect.This paper studies 1001 listed A-share companies in China's manufacturing industry,taking 5005 samples from 2014 to 2018 as the research object,and using the methods of literature research,normative research and empirical research,exploring the logical relationship between internal control,debt financing and corporate performance.First of all,this paper reviews and comments on the existing research on the quality of internal control,debt financing and corporate performance;secondly,it defines the concept of internal control,debt financing and corporate performance,puts forward the research hypothesis and establishes the corresponding model based on relevant theories;then,this paper describes the samples in the empirical part Sex statistics,correlation analysis and regression analysis,as well as data robustness analysis,to verify the assumptions put forward in this paper;finally,the conclusion of this paper is drawn,and corresponding suggestions are put forward according to the relevant results.In terms of external environment,enterprises should improve their financing environment,expand their financing methods,and optimize the bond market;in terms of internal,enterprises should improve the quality of internal control and strengthen their internal control Awareness of risk management and improvement of enterprise performance.The results show that:(1)there is a positive correlation between internal control quality and corporate performance.(2)There is a negative correlation between internal control and debt financing.The higher the quality of internal control,the lower the asset liability ratio,in which current liabilities and long-term liabilities decrease with the improvement of internal control quality.(3)Debt financing has a negative correlation with corporate performance,among which current debt financing and long-term debt financing have a negative correlation with corporate performance.(4)Debt financing plays an intermediary role in the relationship between internal control and corporate performance.