The Empirical Study On The Internal Control And Enterprise Value

Especially the listed companies ’ financial scandals proliferate in recent years, themain reason for this series of problems caused by the imperfections of the system ofinternal control, but how to improve the level of internal control, became an importantissue for many scholars and managers. With the development of the internal controlresearch, the important role of the internal control error correction a variety of measures toenhance management efficiency has reached a consensus in academia, and the internalcontrol and the relationship of the value of the company is also increasingly becoming thefocus of attention and controversy.Nowadays both at home and abroad continue to strengthen the construction of thelaws and regulations related to internal control. The content is richer, and the role it playsis more and more obvious. However, how to measure and evaluate the internal controlrunning in practice? What is the mechanism that internal control affect effect theenterprise value? Currently most academics study on the relationship from the standpointof auditing or government supervision, but the empirical research is absent.To promote the construction of listed companies’ internal control and upgrade thelevel of value management and risk management, this essay focus on the problem how theinternal control affects enterprise value, using method of theory research, empiricalresearch, qualitative research and quantitative research. Based on predecessors’ study oninternal control evaluation, this essay builds an internal control evaluation indicatorssystem combining the characteristics of management of listed companies and theavailability of data. And then with the weight of indicators determined by the AHP levelsanalysis law and expert assigned value law, this essay calculates out the scores of internalcontrol, and analyze the effect internal control has on the enterprise value.At last this essay executes regression analysis using indicators which reflectsenterprise financial performance and value, and concludes that enterprise internalcontrol system has positive effects on enterprise value and constantly strengtheninginternal control of construction helps upgrade the value of listed companies. I hope thatthe studies can help to perfect the construction of the system of internal control of listed companies, and raise the level of internal control of listed companies, so as toprovide theoretical guidance and operational recommendations to maximize theenterprise value.