Related Research On Internal Control System Of Chinese Listing Corporation

Modern enterprise is an aggregate of multilateral contracts. Among the kinds of covenant relationships, the most important one is the clientage. But the asymmetry of information, the incompletion of contracts- and inequity of responsibilities between client and attorney may affect the efficiency and effect of prosecution. Risk and cost of surrogate emerge according to the situations. So it is necessary to constitute standardized supervision & control mechanism. Corporate governance is the appropriate one to realize the balance of power so as to ensure consigner's rights and interests, and to guarantee the efficiency and the effect of prosecution. Corporate governance consists of external and internal mechanism. However, the necessary external competition mechanism is still deficient in China, such as the lack of effective capital market, mergers & acquisitions market, mature manpower market and bankruptcy system. So it goes without saying that the internal corporate governance mechanism is the crucial point of Chinese enterprise's governance.Internal control, which is a kind of self-discipline system of promptings and restrictions, is a significant component of corporate governance. It plays a role of internal supervision & control system and it is a vital guarantee to realize the goals of internal corporate governance. However, the status of internal control in our listing corporations is uneasy. The number of companies that receive specialtreatment or particular transfer because of the wildness of internal control system has been increasing recently. The historian Arnold J.Toynbee said, as for a country, even for a nation, its wane starts from the interior. The exterior force is only the ultimate strike before it deceases. The incompleteness of internal control system of our listing corporations arouses author's concern. This essay, therefore, bases on the topic of the research on internal control system of listing corporations. Using correlative economic theories, considering the evolution of internal control theories, connotations of modem enterprise system and the actual conditions of China, author puts forth some viewpoints on how to enforce the internal control system of Chinese listing corporations.There are four parts in this paper. The introduction presents the springboard of the research. Next, it analyses the theoretic foundations of internal control: theory of clientage and corporate governance, and explain the importance and significance of establishing internal control considering the actual conditions of China. Then, starting from the evolution of internal control theories, author brings forward goals framework and elements framework of modern enterprise's internal control system linking with connotations of modern enterprise system and characteristics of new economics. Last, applying the case of Zhengbaiwen, author analyses the problems and causes of Chinese listing corporations' internal control system and advances counter measurements.