Study On The Correlation Between Internal Control And Enterprise Value Of E-business Enterprise

With the development of economy, as a new business model, e-commerce hasbeen paid attention by more and more enterprises. Small and medium-sizedenterprises finally have the opportunity to use this platform to compete with largeenterprises owning to the emergence and development of e-commerce. E-commercehas brought the revolution of enterprise management environment and managementthoughts, broaden the scope and content of enterprise management. This model ofenterprise survival and operation represents the general trend of modern marketeconomy.Facing the high technology especially the rapid development of IT networknowadays, Electronic business enterprise has both opportunities and challenges.Because of the business characteristics of paperless and none fixed place, businesstrends of invisibility and digitization, electronic commerce enterprises take full use ofthe cyber resource to benefit the communication and exchange between variousactivities, but also the enterprise internal control system has greatly changed whichexacerbates the internal and external risk. Under this industry change, new challengeshave emerged and the traditional means of internal control obviously can not meet thescientific and effective requirements of electronic commerce environment. Thisbackground gives researching on electronic commerce enterprise internal controlcharacteristics and establishing method theories both theory and practice significance.As an important means of risk management, internal control has been a more andmore important role in the evaluation of enterprise value, and one of the methods ofincreasing the value of enterprises is through strengthening internal control to carryout more extensive and more efficient allocation of resources, which laies a goodfoundation for creating higher value. So the internal control and enterprise value areclose to each other and the study on the correlation between this two has greatscientific and practical significance. In addition, in view of the flourisheddevelopment of electronic commerce industry around the world in recent years, this paper attempts to make a study on the relationship between the internal control andenterprise value for electronic commerce enterprise on the basis of analyzing thedomestic and foreign research results of enterprise value. And we hope to get goodmethods to improve the enterprise value of e-business enterprises through the analysisof the internal control measures of global typical e-commerce enterprises, to providemore useful methods for enhancing the value and help the investors make reasonabledecisions.The content of this article includes research background, purpose, significanceand review of related literature. The characteristics of electronic commerce enterprises,the influence of these characteristics to internal control and internal control problemsare deeply studied, and comprehensive and dialectical theory have been used toelaborate the relationship between internal control and enterprise value. At last, takingthe global e-business giant-Amazon as an example, combining its financial data of1998-2011as well as the annual report2012, we analyze and summarize its internalcontrol measures in great detail and sum up the internal control concept and measureswhich have problems and come up with the methods to fix the situation which willhelp the domestic electric business enterprise use for references.