Research On The Relationship Between Enterprise Internal Control And Financial Performance

As early as the 1930s,the concept of internal control was first proposed.Since then,with the deterioration of the distortion of corporate financial information,the corresponding internal control mechanism has also developed rapidly.By the 1990s,the concept of internal control A complete management control system has been developed from a simple accounting control,and then various countries have also issued various relevant policies to regulate the internal control of enterprises in a timely manner.It can be seen that internal control plays a vital role in the business development of enterprises.As the research on internal control continues to deepen,corporate financial performance has become an important factor in considering internal control.This article uses listed companies in the automotive industry in my country as a sample to explore the relationship between corporate internal control and financial performance.While expanding the research field,it also provides companies with th e management of the company provides a reference,which has positive theoretical value and practical significance.This article uses the combing and summary of the domestic and foreign research results to provide certain literature support for the later analysis,and at the same time uses the high-level echelon theory,the fraud factor theory and the principal-agent theory to further analyze the internal control issues.Then this article analyzes the current situation of my country’s auto industry,describes the overall characteristics of my country’s auto industry and its listed companies,and analyzes the internal control and financial performance of listed companies in my country’s auto industry.Finally,an empirical study is conducted on the financial data and internal control data of listed companies in my country’s automobile manufacturing industry from 2007 to 2019 in the CSMAR database.After comprehensively evaluating various financial indicators using the entropy method,this article takes into account the There are significant differences,so the innovative method of quantile regression is used for analysis,which makes the research of the problem deeper and enriches the research results.Through research,it is found that the internal control indicators of the enterprise have a significant impact on the liquidity and inventory of the enterprise;then the quantile regression shows that the impact of internal control is different when the financial performance level is different:internal control has a medium-low and high-level financial performance indicator Of companies have had a positive impact,and the impact on companies with low and medium-to-high financial performance levels is not significant.This shows that the impact of internal control is not static,but changes with the changes in the company’s own operating conditions.Finally,the study found that internal The internal control defects in the control have the most significant impact on financial performance.Based on the above research,this article puts forward relevant reference suggestions to strengthen the internal control of listed companies and promote the improvement of financial performance.