Empirical Research On The Internal Control Environment And Development Capabilities Of Listed Companies

The global financial crisis broke out in2008. Many companies went bankrupt becausethey were unable to withstand the risks arising from the external environment. But somecompanies still showed a good momentum of development under the financial crisis andoccupied a favorable position in the market competition. It is easy to see that the internalpowerful resistance is a critical aspect for withstanding risks. Companies shouldcontinuously improve their self-construction to resist risks for getting access tosustainable development. Internal control is a powerful means to help companies achievebusiness goals. Internal control environment is the basis of the internal control and canexert influence on the effect of the internal control. Therefore, it is rational and necessaryto study the internal environment and corporate development capabilities together. Thisthesis believes that the internal environment directly affects the corporate developmentcapabilities.In order to have a comprehensive understanding of the internal control environmentand the corporate development capabilities, this thesis reviews the literatures on theinternal control environment and the corporate development capabilities to find theadvantages and disadvantages under the in-depth analysis on the studies of the scholars.Then this can provide study points for this thesis; The theoretical section explains thebasic theory of the internal control environment and the corporate developmentcapabilities; The independent variables and the dependent variables are both indexsystem and this can reflect the research object comprehensively; In the empirical analysissection, the factor analysis is carried out to extract factors which can explain thedependent variables strongly. Descriptive statistics is done in the next section. Thedependent variables, independent variables and control variables are linked in themultiple regression section and their relationship is illustrated with empirical results.Finally, this thesis explains the empirical results and puts forward recommendations forthe identified problems based on the empirical analysis.