Research On Corporate Governance And Internal Control

When the management right separates from the proprietorship right, the professional manager and manager market come into being. Therefore, the issues of corporate governance and internal control have drawn great attention among the professionals worldwide. Unfortunately, as a countervailing mechanism, corporate governance appears plausible yet ineffective. There exist serious flaws in stockholding structure, internal control mechanism, and incentive mechanism. On the other hand, domestic enterprises are now facing a real challenge in this respect. In many of them, the widespread weakening of internal control under the existing internal controller system has caused serious problems, like (1) the failure to protect the rights and interests of proprietors or small shareholders, (2) the deterioration of business performance, (3) the breakdown of financial risk management, and even (4) the threat to survival and development of the enterprises. In the face of the problems that exists in corporate governance and internal control, nailing down the relationship between them is very important to(1) perfect corporate governance and internal control,(2)strengthen the ability of development,(3)accelerate the advance of enterprises'benefit.Basing on theories of the corporate governance and internal control, this article expounds the relationship between them by the numbers, and analyses current problems and causation, and provides an approach to the improvement of corporate governance and internal control.The contents are listed as follows:Chapter1 introduces the development process of corporate governance and internal control and the research production home and overseas, brings forward that the relationship between corporate governance and internal control is incomplete intersection. Perfect corporate governance is the basis of efficient internal control; efficient internal control is the guarantee of perfect corporate governance.Chapter 2 analyses the existing problems and causation of domestic corporate governance. As a countervailing mechanism, corporate governance appears plausible yet ineffective. There are many imperfect problems such as government butt in the matters of enterprises without measure. Consequently, there exist serious flaws in stockholding structure, internal control mechanism, and incentive mechanism.Chapter 3 analyses the current problems and causation of domestic internal control. Healthy internal control is the guarantee of the realization of enterprises'goal. But there exist serious flaws in control environment, internal department and so on. There are many reasons, while this article explains by the point of system.Chapter 4, in the face of the existing problems, puts forward material measures to perfect corporate governance and strengthen internal control. The key approaches to improving corporate governance are as follows: to change the structure of stockholder, to perfect surveillance mechanism. On the other hand, it is imperative for the domestic enterprises to perfect their internal control system, and, in the meanwhile, to change the mode of provide of the information and so on. In addition, we should combine corporate governance and internal control, and only in this way can domestic enterprises maintain a healthy development and fulfill the expectations of all parties concerned.