Corporate Governance Research On The Effectiveness Of Internal Control Impact

Internal control is the most basic management tools and methods of modern corporate system, healthy and sustainable development assurance of enterprises. In recent years, domestic and foreign companies'problems are in the scandal to light. Particularly after the financial crisis erupted in 2008, century-old companies are bankrupt and a lot of companies closed in our country. These phenomena reveal problems in many aspects of internal control. These course the reflection of internal control in countries around the world caused, also attracted the attention of our country. Our government has been committed to promoting internal control standards of enterprises. In 2008 the Ministry of Finance and other five ministries jointly issued China's first "basic norms of internal control" and then issued three guidelines on the formation of our internal control "1 +3 "system. Internal control was impacted by corporate governance. Corporate governance is the owner and operator rights and responsibilities between the kind of institutional arrangements, primarily through meetings of shareholders, board of supervisors and the management of the corporate governance structure consisting of the owner of the business operators to implement the supervision and checks and balances. Corporate governance is the foundation of internal control, and sound corporate governance structure is the effective implementation of internal control safeguards. In addition, the company's growth in different industries, the differences of main risk, result in organizational structure, strategic goals and business strategies changing, and corporate governance has inevitably been affected, thereby affect the effective implementation of internal control. In this paper, to be adopted on this basis, the growth industries of different corporate governance impact on the effectiveness of internal control to the growth of different industries how to improve corporate governance to improve the effectiveness of its internal control recommendations. This normative research and empirical analysis using the combination method is used in this paper. First of all predecessors in corporate governance and internal control were reviewed, on the theory of corporate governance, internal control theory, and described the relationship between the two. In explaining corporate governance theory, the main structure of the equity from the characteristics of corporate governance, the board of supervisors, managers and incentives in areas such as research and analysis. In explaining the internal control theory, mainly through the theory of the sort of internal control to explore the nature of the internal control objectives, analyze the efficiency of internal control measure. Elaborating on corporate governance and internal control relationship, the first analysis of the difference and contact, explained on this basis the corporate governance structure of the internal control. Then, in the classification of the Commission is based on the industry growth rate by industry standards, except financial enterprises in China outside the re-classification of listed companies, divided into growing, mature and decline of the company. Finally, empirical analysis of growth in different sectors of the corporate governance structure on the efficiency of internal controls. The empirical results show the actual control state is not conducive to the effective implementation of internal control; the appropriate concentration of the ownership structure is conducive to the establishment of good internal controls the company; board characteristics, management risk preferences and the effectiveness of monetary compensation for the impact of the internal control growth in different show different characteristics of the industry. This research extends internal control theory, and practice has played a guiding role.