Digital Transformation And Internal Control Of Quality

Internal control quality is the cornerstone of enterprise survival and development.The research shows that enterprise information construction is one of the factors affecting the quality of internal control.The digital transformation based on information technology such as the Internet of Things and big data has a profound impact on the internal control construction of enterprises.By using digital technologies to utilize,store and share information,enterprises can improve the efficiency of information use and operation management.On the one hand,the application of digital technology can break the information barrier between enterprise departments,optimize the business process,and ensure the openness and transparency of authorization examination and approval.On the other hand,it can strengthen the information transmission mechanism between enterprises and the outside world,and play the role of external supervision.Combined with the current research,most scholars discuss the factors influencing the quality of internal control from the perspective of corporate characteristics,governance structure and so on.There are few literatures on the impact of new generation information technology on the quality of internal control.Therefore,with the deepening of enterprise digital transformation,this thesis discusses the impact of digital transformation on internal control from a micro perspective has certain theoretical value and practical significance.This thesis first puts forward research questions according to the background and current situation of enterprise digital transformation,and summarizes the literature related to enterprise digital transformation and internal control quality.Secondly,based on internal control theory,information asymmetry theory,signal transmission theory,enterprise resource based theory,analysis and research hypothesis are proposed.Then,an empirical study was conducted,which selected 24,345 sample data of Chinese A-share listed companies from2011 to 2020 for multiple regression,and used empirical research method to study the relationship between digital transformation and internal control quality.In the further analysis,the thesis also examines the impact of digital transformation on the five elements of internal control,and explores the impact of audit committee size,product market competition,economic policy uncertainty on the relationship between digital transformation and internal control quality.In addition,this thesis analyzes the economic consequences of internal control quality.The innovation of this thesis is mainly reflected in the following points: First,the article for the enterprise internal control quality factors to provide new research ideas.Based on the perspective of digital transformation,this thesis studies the relationship between digital transformation and internal control quality,enriching the research on factors affecting internal control quality.Secondly,this thesis discusses the regulatory effects from different aspects of product market competition,economic policy uncertainty and audit committee size,which is helpful to understand the promoting effect of digital transformation on internal control quality from multiple perspectives.Finally,the economic consequences of digital transformation are discussed from total factor productivity and corporate information transparency.Based on the empirical test,the following results are obtained:(1)Digital transformation is significantly positively correlated with internal control quality,and there is a certain lag;(2)Among the five elements of internal control,digital transformation is positively correlated with internal environment,risk assessment,control activities,information and communication,but not with internal supervision,among which the influence on information and communication is the most significant;(3)The smaller the size of the audit committee,the more obvious the effect of digital transformation on the quality of internal control;(4)Product market competition significantly strengthens the positive influence of digital transformation on internal control quality;(5)The uncertainty of economic policy weakens the positive influence of digital transformation on the quality of internal control;(6)Digital transformation can further improve total factor productivity and corporate information transparency by improving the quality of internal control.At the same time,a series of robustness tests such as changing measurement methods are adopted,and the conclusion of this thesis is still valid.The endogeneity test was carried out by instrumental variable method to exclude the possible influence of mutual causation between digital transformation and internal control quality.According to the above conclusions,we can get the following enlightenment: First,the government should further call on and support enterprises to carry out digital transformation,and provide enterprises with a more open and inclusive environment for digital transformation.Secondly,enterprises should increase digital investment,improve the efficiency of information use and communication,and improve the effectiveness of internal control.