Research On Effectiveness Of Internal Control And Stability Of Enterprise Value

From "Enron" to "Worldcom",we can see the turmoil in financial fraud occurred continuously.After that,the"CAO event" and "China national Cotton Reserves Corporation" happened with the loss of 554 million dollars and 10 million. In 2008,the U.S's subprime mortgage crisis triggered a global financial crisis,and it had revealed many aspects of our internal control problems.Because of so many questions,the Ministry of Finance officially launched the "Internal Accounting Control Standards-Basic Standards(Trial)"in June 2001,and it had to become "an important milestone in the road of attaching importance to and strengthening the internal control system".In July 2008,the Ministry of Finance officially together with SFC,Audit Commission,CBRC,CIRC formulated the "Basic norms of internal control" which is implemented in 2010. It estabilishs an internal control rules and regulations with enterprises as the main,government regulation as promotion and agency audit as an important part, and it had put forward higher requirements of listed companies'internal control under the guidance of national policy.In this context,the depth discuss of internal control and stability of enterprise value is very important,more or less latent risk has present in the process of enterprise development, so long-term maintenance and inspection is essential.Especially for IT industy,Itenterprises have become the most active and most promising new economic growth point.Therefore,the research of the effectiveness of internal control and the healthy development of IT enterprises value is an important subject which need to study and solve currently.In order to achieve the desired reseach objectives,the paper makes arrangements in five aspects. The first part is the introduction, includes the research background,research significance,research methods,research ideas and so on. The second part of the paper begins from the analysis of theories of the internal control and enterprise value,and it explains the relationship between the internal control and the stability of enterprise value; In the third part,we try to reseach the effectiveness of internal control on stability of enterprise value combinating of IT industy's A-share listed companies experience data from 2004 to 2008 in Shanghai and Shenzhen Stock Exchange,and concludes:Internal control has a positive role in promoting the stability of enterprise value;In the forth part,the paper puts forward suggestions to improve the internal control in order to improve the stability of enterprise value.Finally,the paper describes the characteristics of innovation and research limitations.Thus hope to provide a theoretical reference of facilitating continued development of internal control of listed companies...