An Empirical Study On The Impact Of Internal Control On The Promotion Of Enterprise Value

Internal control effect the activities of enterprise in anywhere,by analysis and control the information of behavior in each link,avoid or reduce the risk may occur in the enterprise behavior,guarantee the enterprise behavior going well,thus promotes the enterprise value.Although the development of internal control is short,but effective.《 Basic Standard for Enterprise Internal Control 》 has published by CMOF,CSRC,CIRC,CBRC and CAA in 2008,to improve enterprise management efficiency in the enterprise activities and strengthen the activities of risk response capacity,promote the level of internal control,proposed new requirements of China enterprises’ internal control.Since July 1,2009,listed companies must submit the reports of internal control with the audit opinion,encourage private companies do the same thing.Putting internal control into effect,marked Chinese companies’ internal control reach a new stage.With the expanding of enterprise,there were many more business activities and transactions,internal control is not only to ensure the development of enterprise,but also achieve the ultimate goal of increase enterprise value.At present,the study of effect between internal control and enterprise value is internal control defects and design internal control elements,a different approach in this paper,from the five objectives of internal control as the starting point,through analysis the five goals in the implementation of enterprise activities,explore the effect between internal control and enterprise value,and provide reference for the promotion of enterprise value.First of all,in the aspect of theory research,this paper reviews the domestic and foreign study the relationship between internal control and enterprise value has two categories:the lack of internal control and the influence on the enterprise value;design internal control degree,research the influence between internal control and enterprise value.Secondly,reviews control theory,principal-agent theory,the theory of risk management,management theory,economic theory,analysis the current situation of internal control of Chinese enterprises.In the empirical research,based on the five goals,provide five assumptions to study the relationship between internal control and enterprise value.Based on 2012--2014 listed companies of machinery manufacturing,building the internal control evaluation system with five research hypothesis,finally it is concluded that the internal control has effected enterprise value.Finally,provide the the details of conclusion and suggestions,analyzes the limitations of this paper and prospected the future.