The Study On The Influence Of Corporate Governance Structure On Internal Control In Listed Companies Of China

After participating in the international economic cycle,the enterprises in China are urgently to guard against internal irregularities and risks,which stimulate the people's desire for internal control. On twenty-eighth Jane in 2008,the Chinese Ministry of Finance, the Chinese Ministry of Audit,the Chinese Securities Regulatory Commission, the Chinese Bank Regulatory Commission,and the Chinese Insurance Regulatory Commission jointly issued "Basic Norms of Enterprises' Internal Control",which indicated that the system of internal control norms in our country made a great progress.The basic norms will be first carried out in listed companies of China on first July in 2009.The basic norms demand that listed companies carrying out the basic norms should use "three level evaluation method" to evaluate the effect of internal control.On this situation,how to improve the effect of listed companies' internal control in China becomes the common topic between theoretical circle and practical circle.This article researches the factors influencing the internal control effect from the point of corporate governance.This article first analyses the present situation of listed companies' corporate governance and internal control in China,then researches the mechanism that corporate governance influencing internal control.On the base of present situation analyse and mechanism research,this article selects 100 manufacture listed companies which listed in Shanghai Security Exchange from 1990 to 2005 and studys the single influence of the corporate governance on the internal control.We find that some factors can obviously influence the internal control,such as the share proportion that the first shareholder holding,the independent directors,the frequency of board meeting and the frequency of supervisor meeting.We should improve the effect of internal control from the angle of corporate governance.We should take actions such as building and perfecting supervisor mechanism to supervise the behavior of controlling shareholder,perfecting the policy of independent directors to improve the independent of the board,enhancing the directors and the board responsibilities.Supervisor and independent directors can complement each other.For the listed companies which have not eastablised the policy of independent directors,we should strengthen the policy of supervisor.For the listed companies which have eastablised the policy of independent directors,we should take place the policy of supervisor for independent directors.What's more, the multi-operating listed companies should pay attention to renew and reform the internal control system.