An Empirical Study On The Effect Of Stakeholder On Internal Control Deficiencies Of Listed Companies

The endless stream of case about financial fraud and illegal operation make various stakeholders increasingly recognize the importance of the internal control system. From2002SOX Act, more and more people from theoretical extent and practical extent pay attention to the study of the internal control deficiencies, especially influencing factors of internal control deficiencies.There are numerous and complex factors related to a variety of stakeholders influencing internal control deficiencies. For example, managers can constantly improve the internal control design, operation mechanism, and supervision and evaluation system, toreduce the generation of internal control deficiencies from the source. Therefore, in order to fully grasp the cause of internal control deficiencies, in-depth study of the influencing factors of the internal control deficiencies, reduce the likelihood of internal control deficiencies, it is very necessary to research influencing factors of internal control deficiencies from the stakeholders’ perspective. The research has important practical significance to improve its internal control system, protect the rights and interests of the various stakeholders, prevent the generation of internal control deficiencies, and with reference to further improve internal control rules and regulations and internal control information disclosure rules of the regulator.Above all, the thesis reviews the literature at home and abroad, defines the theme and content of the study based on China’s listed companies, and introduces the theories about internal control deficiencies and stakeholder. On this basis, according to the role and responsibilities during the internal control process, stakeholders are divided into three categories, including the evaluators, the supervisors and the identifiers. And a more comprehensive proxy variables internal control deficiencies are designed according to the definition of significant internal control deficiencies and internal control target. And then it formulates research design involves research ideas and frameworks, research sample and data, and research methods. Subsequently, the thesis analyzes thein fluences mechanism of stakeholders on internal control deficiencies, including participation influencing factors, influencing motivations, and influencing methods, in order to provide the necessary theoretical support for the following empirical analysis.Relying on the theoretical analysis, classification of stakeholders and internal control deficiencies measurement, the thesis conducts the empirical analysis of influences of stakeholders on internal control deficiencies. Firstly, it investigats the relationship between the evaluators of stakeholders and the internal control deficiencies by taking management as the main proxy variables of evaluators, and the results confirme that the evaluators play an impormtant role to restrict internal control deficiencies. Secondly, it investigats the relationship between the supervisors of stakeholders and the internal control deficiencies by taking external auditas the main proxy variables of supervisors, and the results confirme that the supervisors play an external assurance role to restrict internal control deficiencies. Thirdly, it investigats the relationship between the identifiers of stakeholders and the internal control deficiencies by taking institutional investors the main proxy variables of identifiers, and the results confirme that the identifiers play an supervision and governance role to restrict internal control deficiencies. Finally, the thesis refines the corresponding policy recommendations according to empirical analysis, to provide a scientific basis and theoretical guidance for regulations and implementation of the internal control.