Empirical Study On Family Governance Structure Of Listed Companies On The Impact Of The Effectiveness Of Internal Control

According to2012statistics, China’s private enterprises more than10million, of whichabout90%of family businesses, and more and more become a stock company listed on thefamily business. There are reports, July15,2012A-share listed companies in the684is afamily business, accounting for49%of total private listed companies. Family business isplaying an increasingly important role in stimulating economic growth, promoting theindustrialization and urbanization process in China, increase the income of urban and ruralareas, etc.,However, with the social and economic environment continues to change and grow in therise of their own family business all these years, the family business as a whole in the face ofthe external environment and seek to improve their own terms, as reflected in the growingnumber of problems, such as the ownership structure does not reasonable, due to thedominance serious; oversight mechanisms play a minimal role, individual rights override therules and regulations; controlling family secret operations, expropriation of minorityshareholders, and so on. These problems have seriously affected the development of thefamily business,The fundamental reason on family business governance structure in its own particularity,and then the implementation and operation of internal control impact. Object2012is knownas the Chinese called the intergenerational transmission of family business the first year of thenew successor will begin at the helm of the family business, and therefore to the familybusiness as empirical analysis of listed companies, corporate governance structure study theeffectiveness of internal control the impact on the survival and development of the familycompany has important theoretical and practical significance, contribute to help Chinaimprove the governance of the family business, Mao colonization wealth, Tobe buildingsafety, making it a revival of the national economy of giant pillars.In this paper, drawing on existing research results, based on the selected motherboard2010-2012A shares in Shanghai and Shenzhen listed company family empirical researchsample data using SPSS software, through the use of factor analysis, descriptive statistics, correlation analysis and multiple linear regression method, the family of the governancestructure of listed companies on the impact of the effectiveness of internal controls empiricalresearch. The study found: ownership concentration, CEO duality and the effectiveness ofinternal control was significantly negatively correlated; board size, the ratio of independentdirectors of the Board, the Annual General Meeting and the Supervisory Board shares theattendance rate and the actual size of the effectiveness of internal control there was asignificant positive correlation; management remuneration and internal control effectivenessis not significant correlation. Through in-depth analysis of the empirical findings, put forwardseveral measures to improve the corporate governance structure of the family, such as tofacilitate the effective operation of internal controls.The innovation of this paper is that specializes in family A shares in Shanghai andShenzhen listed company on the Main Board of the case, set the corresponding indicator forthe particularity of the family into the governance structure of listed companies, moresystematic theoretical and empirical perspectives were discussed our family corporategovernance structure influence the effectiveness of internal control, research findings willhelp us to form a better understanding of the impact of family governance structure of listedcompanies between internal control, to find a breakthrough to enhance the effectiveness ofinternal controls to help in the family of listed companies to improve their quality.