Research On The Influence Of Internal Control On Enterprise Innovation Efficiency

Innovation is the core performance of a country’s comprehensive strength and the key factor to ensure the survival and development of enterprises in the fierce market competition.But the biggest problem of enterprise innovation in our country is that the innovation efficiency is not high enough.Therefore,how to improve the efficiency of enterprise innovation is a focus of domestic and foreign scholars.With the introduction of SOX act in the United States and the promulgation of basic norms of internal control of enterprises and related supporting guidelines in China,scholars at home and abroad are increasingly active in the study of the economic consequences of internal control of enterprises,especially the introduction of application guidelines for internal control of Enterprises No.10-Research and development,which makes internal control,an important internal mechanism,becomes the focus of scholars’ research on innovation efficiency.Then,whether internal control can improve the innovation efficiency of enterprises,and how its influence path,this is the main content of this paper.Based on the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2017,this paper makes a systematic and normative theoretical analysis on the mechanism of internal control affecting the innovation efficiency of enterprises,and uses statistical and measurement methods to conduct a more rigorous empirical test.At the same time,due to the different degree of rule of law construction,the different degree of government intervention,the unbalanced level of financial development,and the different intensity of intellectual property protection,the regulatory role of institutional environment will be further investigated through extensive research and combined with China’s actual situation.In order to study the impact of internal control on the innovation efficiency of enterprises,firstly,this paper reviews the research of domestic and foreign scholars on the concept of enterprise innovation,the economic consequences of internal control and the factors influencing innovation efficiency.Through literature review,it is found that there are still deficiencies in the existing research.The specific performance is as follows: the existing scholars maintain different views on the role of internal control in enterprise innovation efficiency;combined with the institutional background of our country,there are not many documents to test the regulatory role of internal control in enterprise innovation efficiency,which provides an opportunity for this study.Secondly,this paper constructs the theoretical framework of the relationship between internal control and enterprise innovation efficiency from two aspects: five elements of internal control and four objectives of internal control.At the same time,combining information asymmetry theory,principal-agent theory and comprehensive risk management theory,it analyzes three specific mechanism paths of internal control affecting enterprise innovation efficiency.That is to say,good internal control can improve the innovation efficiency of enterprises by reducing the information asymmetry between the inside and outside of enterprises,alleviating the principal-agent problem and reducing the innovation risk of enterprises,and then put forward the research hypothesis of this paper.Thirdly,this paper uses the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2017,combined with SPSS and Stata measurement software for regression test,through empirical test,it is found that under the same conditions,internal control and innovation efficiency are significantly positively correlated.Furthermore,compared with private enterprises,the internal control of state-owned enterprises has a stronger positive impact on the innovation efficiency of enterprises.Finally,from the four dimensions of the level of legalization,the level of government intervention,the level of financial development and the protection of intellectual property rights to test the regulatory role of institutional environment in the impact of internal control on enterprise innovation efficiency.Through extensive research,this paper finds that the level of legalization,the level of financial development and the protection of intellectual property have a positive regulatory role between internal control and innovation efficiency;the level of government intervention has a negative regulatory role between internal control and innovation efficiency.The contributions of this paper are as follows:First,although some scholars study the impact of internal control on enterprise innovation efficiency from the perspective of internal control,scholars at home and abroad have different opinions on the role of internal control in enterprise innovation.Therefore,this paper discusses the impact of internal control on the innovation efficiency of enterprises,complements and improves the research on the economic consequences of internal control,the influencing factors of enterprise innovation efficiency and the influencing mechanism between internal control and innovation efficiency.Second,combined with the actual situation of our country,we test and analyze the regulatory effect of institutional environmental factors such as the nature of property rights,the level of legalization,the level of government intervention,the level of financial development,and the protection of intellectual property in the relationship between internal control and enterprise innovation efficiency,and refine the research on internal control and enterprise innovation.At the same time,it also provides some reference value for improving the innovation efficiency and implementing the innovation development strategy.