Study On The Correlation Between Internal Control And Earning Ability Of The Manufacturer Listed Companies

With the economic competition of the global economy becoming hotter, and the businessenvironment faced becoming more volatility, how companies in the market competition in aninvincible position goes concern lies. Form the domestic and international experience, anysuccessful business has a sound internal control system.“Enterprise Internal Control” promulgated in2010supports guidelines on the fullimplementation of the internal control system of norms more specific requirements. It asks alllisted companies to built internal control system as its words. So we can think that the twosets of guidelines issued by the internal control the overall situation has improved to someextent. However, the implementation of a sound internal control system requires a lot ofinvestment, but at this stage most of the enterprises being in expansion, the amount of moneyis not very abundant. So some enterprises establish and perfect the internal control systemunder the pressure of the policy, in essence, being lack of internal control building initiative.To this end, the index system is established of an internal control, to research thoroughly theinternal control and profitability first correlation, hoping to provide a reference for Chineseenterprises to further improve internal control.First, we summarized and reviewed the development process of the internal control and theachievements of the internal control and the profitability at home and abroad systematically inthis paper. Then we studied the relation between the internal control and profitability from theaspects of theory. Put forward the synthetic evaluation system of internal control of listedcompanies according to our country’s enterprise architecture and operation status quo ofcurrently. Attempts to quantify the enterprise internal control status. Profitability got throughprincipal component analysis (pca) is the explained variable. Establish the regression modelwith internal control. By selecting samples the data of listed companies, we validate themodel mathematically. Then we come to the conclusion that Company’s internal control haspositive phase on profitability. At the end of this article based on the results of the analysis,put forward the internal control of listed company’s defects. For is in the internal controlrelated to the profit ability is weak relationship of the three elements, this paper puts forwardstrengthening the external supervision, strengthen the initiative of corporate responsibility, and stimulate the management the three policy Suggestions.