The Impact Of Internal Control Quality On The Financing Constraints Of Agricultural Listed Companies

Since the COSO Committee released the "Integrated Framework for Internal Control" in 1992,the definition of internal control has been comprehensively organized and annotated for the first time.The importance of internal control has become increasingly apparent.For enterprises,it is common to see value loss and serious losses caused by internal control deficiencies.However,the information asymmetry caused by the generally low quality of internal control in agricultural enterprises has deterred many investors,This has led to a high degree of financing constraints for most agricultural enterprises,which has greatly affected the development speed of agricultural enterprises in China.There are some relevant studies on the quality of internal control and corporate financing constraints in China,but agricultural enterprises have not been included in the research object,and there is not much research on the impact mechanism path between internal control quality and corporate financing constraints.Therefore,this article will combine case studies and empirical studies to study the relationship and mechanism between the two,Explore and analyze the internal mechanism and relationship between the internal control quality and financing constraints of listed agricultural enterprises in China.Firstly,this article defines relevant concepts such as internal control and financing constraints by organizing relevant literature and theoretical foundations,and elaborates on the relevant theoretical foundations involved in the article.Secondly,empirical research is conducted on the relationship between internal control quality and the degree of financing constraints of listed agricultural enterprises in China from 2012 to 2021.Finally,this article introduces Beidahuang Group as a case study to further analyze this group company with representative characteristics of agricultural listed enterprises.Based on empirical conclusions,an in-depth study is conducted on the internal mechanism between the quality of internal control in agricultural enterprises and the degree of financing constraints.Relevant conclusions are drawn:(1)Improving the quality of internal control in enterprises is beneficial for conveying positive signals of good development prospects to the outside world,Optimize the financing activities of enterprises.(2)Improving the quality of internal control in enterprises can effectively improve their management structure,alleviate agency conflicts with investors,and alleviate financing constraints.(3)High quality internal control in enterprises can effectively reduce the information asymmetry inside and outside the enterprise,help the management and external investors make more reasonable and effective decisions,reduce investment risks,and improve the financing ability of the enterprise.Finally,this article provides relevant suggestions for agricultural enterprises to alleviate the degree of financing constraints from the perspective of internal control by integrating theoretical analysis,empirical research results,and case analysis results.