General Manager Features And Internal Control Effectiveness Research

The more and more keen competition exists in the enterprise of our country. As the China Aviation Oil Event and999Group Company’s internal control failures have a frequent exposure, the research of internal control has raised the high tide in our country. At present, establishing the reasonable powerful enterprise internal control system has become the key of contemporary enterprise’s survival and the development. However, internal control is designed by the execution policy, government level, and the management level and other personnel; the influence factor of internal control contains the carry out aspect and the design aspect. Especially general manager, as the highest person in charge, his individual quality has a close correlation with company’s internal control.Based on the research of Principal-agent theory, Stakeholder theory, Human capital theory and Incentive theory, we find that there are close relationship between the general manager and enterprise. From these basic theories, research achievements at home and abroad, the article has laid a solid theoretical basis. Then, Shanghai A-share579listed companies as samples, we used the correlation analysis, multiple regression analysis and logistic regression methods in the empirical study to analysis the results. From the term of office, record of formal schooling, age, salary, holding ratio personal characteristics of general manager, we analyze the relationship of the general manager and the internal control effectiveness. Combined with the theoretical and empirical, it is more persuasive. So we can put forward a new type of management advice to the company.Results of this paper show that:The personal quality of general manager and internal control effectiveness are closely linked. If the personal ability of the general manager is strong, his quality is good, the internal control effectiveness will be better. In these characteristics, general manager agency chairman position and general manager change frequency exists negative correlation with the internal control effectiveness; the term of office, degree, salary, their shareholding have correlated with internal control effectiveness.