The Research On The Relationship Of The Internal Control Environment And Company Performance

The industry of bank,as the core of the financial system,has an important influence on the security of national economy and people’s daily life. In order to strengthen the competitiveness of banks in china, banking began system reform, introduced foreign advanced system and management experience of bank——especially the perfect internal control system. But it is undeniable that, even if they established a perfect internal control system, the financial crimes or barrage happened one after another,such as the2011Qilu bank fraud,2010Beijing agricultural business credit fraud, minsheng bank gold blasting warehouse, etc. However we found that in spite of the commercial bank has already established a internal control system, the occurrence of all cases more or less have closely related with the risk of china’s banking system and the lack of the internal control environment. If the commercial bank establish perfect internal control environmental construction, the bank can ensure it’s safety and operation stably. So it is very important for the commercial bank to enhance the internal control environmentHence, this paper is based on the existing domestic and foreign research of the relationship between internal control environment factors and corporate performance. First of all, this paper analyzes the influence of internal control environment elements on the corporate performance. Then,this paper takes the Chinese listed banks as the research sample and the object. The results show that the most effective and fast way to enhance the competitiveness of china’s commercial banks is effectively reinforcement internal control environment system.By the theoretical and empirical research, this article reveal the internal control environment factors effects on the company performance. The author think that the banking sector development has great relevance with the establishment of the inner control environment system of rationality and integrity.There are some innovations of this paper,such as:first of all,this paper attempt to the influence of internal control environment elements on the corporate performance through the theoretical and empirical researches; second, this paper takes the Chinese listed banks as the research sample and the object,have more targeted.