The Empirical Research On The Effectiveness Of Listed Companies To The Internal Control Base On Corporate Governance

The corporate governance and internal control has become the core of themodern corporate systems,which characterized as “Clearly establishedownership,well-defined power and responsibility,separation of enterprisefrom administration,and scientific management”.It is necessary for thecompanies to have good corporate governance and internal control to enhancecompetitiveness and business performance.It is also the foundation forprotecting the owners and other interested person,forming the orderly andeffective modern market system.The two mentioned above are different from eachother,but meanwhile closely related to each other.Corporate governancestructure is the premise and foundation for ensuring the internal controlsystem working well. Therefore,the writer proposes the main here:whether theinternal control working out depends on the rationality and the effective ofcorporate governance structure.The paper is divided into five parts. Firstly,the writer reviews studiesin corporate governance strcture and internal control within and outsideChina.Secondly,the concepts and the basic theories on corporate governancestructure and internal control have been introduced,and the relationshipbetween the two will be stated in this part.Thirdly,this paper researches thecorporate governance structure and internal control in China,and analysis howthe corporate governance structure influences the efficiency of internalcontrol. Fourth,this paper makes an emoirical study on influence to theefficiency of internal control by corporate structure. Corporate structureis characterized by thirteen attributes:which are the biggest stockholdercontrol,the actual holder,the size of the boar of directors,and so on.The studyis based on a sample all the listed companies form2008to2010.Then,a linearregression and two logistic regression equations are established to test theefficiency of internal control.Finally,the paper provides some advice onimprove Chinese listed companies internal control.