Research On Correlation Between Internal Control Quality And Corporate Value

As an important part of business management, the goal of internal control is consistent of business objectives, and the objectives of internal controls should be able to help companies achieve the overall goal, it is the concrete of the overall goal. Internal control is established on the basis of the enterprise’s overall objectives, its purpose is not limited to troubleshooting a variety of measures and reliability of financial reporting, but to the various aspects of operation management, internal control system has become manifestation of corporate governance structure, internal control development is consistent of the development of the corporate governance structure.Compared with the target of the traditional profit-maximizing, the target of enterprises values maximize could comprehensively reflect the status of the enterprise management; enterprise value can also reflect the status of the enterprise management under uncertainty. Enterprises have a goal to maximize the value is not just concerned about the profits of an enterprise but be more concerned about the future interests of the enterprise, as well as their impact on the future value of the enterprise. The enterprise value can effectively reflect the expectations of investors and corporate industries in which growth conditions.As a very advanced organizational management system, internal control has become an important part of business management. For modern enterprises pursue enterprises values maximize, the construction of the internal control system play a very important role. The implementation of internal control will directly affect the goals of maximizing corporate value. Internal control and enterprise value is closely linked. For The enterprises have the goal of maximizing enterprise value, it is necessary to improve the enterprise’s internal control. It follows that there is a close relationship between internal control quality and business value.The paper is divided into five parts, the first part points out the significance of the research background of this article, as well as topics were summed up and organize the literature, the research methods and innovation. The second part is the quality of internal controls and enterprise value of the basic theoretical research, this section includes the principal-agent theory, asymmetric information theory and value theory, these three economic theory describes the quality of internal controls and corporate value relevance. The third part is the establishment of the quality of internal controls and corporate value model, this part of the selected explanatory variables, the explanatory variables and control variables, and underlying assumptions, the establishment of a multiple regression model. The fourth part is the correlation between the quality of internal controls and enterprise value of empirical research, this part of the first selected sample, and then proceed to the analysis of the correlation between variables, the final multiple regression analysis and concluded. The fifth part is the concluding remarks.