Research On The Impact Of Control Rights Allocation On The Effectiveness Of Enterprise Internal Control

With the advent of the new economic era,companies must follow market-oriented rules,integrate into the global market governance system,optimize internal control,improve corporate governance,and promote market competitiveness.From the SOX Act in the United States to China's "Basic Standards for Internal Control of Enterprises",many requirements have been made in accounting professional supervision,corporate governance,and securities market supervision.However,due to the imperfect market economy system,imperfect capital market system,and non-standard corporate governance,the market's role in resource allocation is very limited.In recent years,the competition for control rights staged by domestic enterprises has intensified,and the effectiveness of internal control of enterprises has been insufficient,which has seriously affected the normal operation of enterprises.How to arrange company control,improve the effectiveness of internal control,and optimize the corporate governance checks and balances,based on the basic ideas of control rights theory and principal-agent theory,this paper divides the allocation of corporate control rights into three levels: shareholders,board of directors and managers,and The corresponding control rights allocation mode is combined to obtain a comprehensive level of control rights allocation.At the same time,the institutional environment elements are introduced.Starting from the internal and external governance environment of the enterprise,the mechanism of the control rights allocation on the effectiveness of the internal control of the enterprise and the adjustment of the institutional environment are fully explored Effect,give full play to the reasonable guarantee function of internal control on corporate governance.Based on the logical starting point of the effective capital market,this paper takes listed companies as the main body of research,selects the annual financial data of 1376 sample companies of the Shenzhen Main Board from 2014 to 2017,and selects the degree of equity concentration and director control from three levels of shareholders,the board of directors and the management Variables such as proportion and the source of the general manager are used to construct a comprehensive evaluation index for the effectiveness of internal control by principal component analysis.The effects of control rights allocation on the effectiveness of internal control and institutional environment are studied through descriptive statistics,correlation analysis and regression analysis,and robustness testing.The regulatory effect.Research results show that:(1)At the shareholder level,equity concentration positively affects the effectiveness of internal control;equity checks and balances positively promote the effectiveness of internal control;compared with non-state-owned enterprises,state-owned enterprises have set an example(2)At the board level,the proportion of directors controlled by shareholders positively affects the effectiveness of internal control;the proportion of directors controlled by managers negatively affects internal Control effectiveness;the proportion of independent directors is positively improving the effectiveness of internal control;(3)At the managerial level,the general manager is appointed by the major shareholder and the combination of both positions negatively affects the effectiveness of internal control;(4)At a comprehensive level,maintaining a relative concentration of equity,the structure of the board of directors controlled by shareholders and the governance model of the general manager 's public engagement are conducive to the effectiveness of the current internal control of the enterprise;(5)The institutional environment has a negative regulatory role in the impact of the allocation of control rights on the effectiveness of internal control.The main innovation of this article is that it enriches the existing literature and only considers internal control efficiency from a single level such as shareholding structure,board characteristics or managerial characteristics,and uses the institutional environment as a regulatory variable to explore the effectiveness of control rights allocation on internal control from a new perspective Influence,select nine indicators that reflect the five internal control objectives,rely on factor analysis to build a new set of evaluation indicator systems,improve internal control related theories,and propose corresponding improvements from the corporate and government levels to optimize the allocation of corporate control rights and upgrade Effectiveness of internal control.