The Influence Of Internal Control Quality To Efficiency And Effect Of The Company Value Creation

With the rapid development of modern science and technology, market integration and economic globalization wave has swept the world.Enterprises are facing the economic environment that is undergoing tremendous changes. The formation of the globalization of markets has only intensified the competition between enterprisesdegree to bring new markets to businesses.Economic changes in the environment are both opportunities and challenges to enterprises.How an enterprise can remain invincible in such a fierce market competition environment, in order to achieve balanced and stablelong-term development, has now become the focus of theoretical and practical circles. A company’s long-term and stable development of means is sustainable and sustainable development. Its operational goal is to create value, so its sign of success is the continuous improvement of the value of the company. Firm value creation requires the joint efforts of staff,but the objective function of the various stakeholders is different, even conflict, and how to coordinate the interests of all stakeholders, consistent to the objective function together for the corporate image services, has become a value of the company to create the key. And implementation of internal control can just solve the problem.There is a significant impact on the pros and cons of the quality of internal control to creat the firm value.Internal control will directly determine the size of the company’s value creation, and ita impact on the firm value is mainly reflected in lower agency costs and financing costs,and can improve the efficiency of enterprises.Therefore.how to enhance firm value by strengthening the company’s internal control has become practicalsector and academic circles topic of common concern. However, existing research on internal control increasing mainly concentrated in the audit pricing, earnings quality, performance, less direct attention to the impact on firm value, and existing research results are different. This article is from the value of the company point of view, using the method of analysis in the literature were analyzed and summarized the existing internal control research, described the relationship between internal control quality and value of the company and then standardize research methods in theory, then2011 Shanghai A-share listed companies as our sample, using the method of statistical analysis, and empirical analysis to expand the empirical research,the focus of the quality of internal controls and corporate value, the value of the company to create the relationship of the ability and found that the improvement of the quality of internal control help to enhance corporate value and the ability to create value. Finally, summarize the conclusions of this paper and some suggestions from the regulators, listed companies and investors t. Therefore, this article reads as follows:The first part of the introduction:this section introduces the article, significance, research ideas and content, and summarizes the paper’s innovative points and deficiencies.The second part of the literature review:this section describes the internal control of the company value creation:an active role in a negative effect and no significant effect.In the end, summed up the existing gaps in the documentary.The theoretical analysis of the third part of the internal control and corporate value relationship:this section is from the principal-agent theory, the theory of internal control and value management theory to illustrate the relationship between internal control and firm value.The fourth part of the index design:the part of the innovation of this paper. This section includes design principles, the relevant literature, and index selection.The fifth part of the empirical research:this section is based on the existing literature on the subject of analysis, the two assumptions and the model design, variables and model calculation and sources of variables, an empirical analysis of sample data.The sixth part of the study conclusions and recommendations:this section summarizes the conclusions of this study, and put forward relevant policy recommendations from regulators, listed companies and investors’ point of view. The study finds that the following two points:First, from the current point of view, China’s listed companies in terms of internal control is still in relatively low-level stage. Second, the quality of internal control and corporate value, company value creation ability showed significant positive correlation indicating that strengthen the internal control value is good for the efficiency and effect of the company value creation to upgrade.Major innovation of this paper is its topics innovative, and build a new quality evaluation index system of internal control,the indicator of zhe fullfillment of the social responsibilities on the existing basis. The downside of this paper is that not all of the variables by t test and the interpretation of the model intensity is not very high.