Research On The Influence Of Internal Control Of Chinese Listed Companies On The Innovation Ability Of Enterprises

This study systematically investigates the impact of internal control and its various components on the innovation capabilities of listed companies.By comprehensively considering various mainstream variable construction methods,the paper analyzes the relationship between internal control in Chinese listed companies with different ownership systems and manufacturing enterprises and their innovation capabilities.Guided by principal-agent theory and information transfer theory,the study reviews relevant achievements from previous scholars and proposes hypotheses on the relationship between internal control and enterprise innovation capability,property rights,and the moderating role of manufacturing enterprises.The paper discusses the impact mechanism of the above relationships through R&D investment and internal control sub-variables,and conducts empirical testing using a model.Employing data from Chinese listed companies between 2011 and 2021 for regression analysis,the main conclusions are as follows: enterprise internal control significantly inhibits innovation capability,and it damages the improvement of innovation capability by reducing the proportion of R&D expenditure and the proportion of R&D personnel.Among internal control sub-indices,internal environment(IC＿ENV),risk assessment(IC＿RISK),and internal supervision(IC＿GOVR)exhibit a significant inhibitory effect on innovation capability;however,internal information and communication(IC＿INFO)promote enterprise innovation,while control activities(IC＿CON)show no significant impact.Furthermore,considering the impact of property rights,the study finds that internal control exerts a stronger inhibitory effect on innovation capability in non-state-owned enterprises compared to state-owned enterprises.Additionally,the paper reveals that the inhibition of internal control on manufacturing enterprises is significantly lower than that of non-manufacturing enterprises.