Research On Financial Risk Control Of Small And Medium - Sized Listed Companies In China Based On Internal Control

Reform and opening up,especially after the accession to the WTO,with further deepen cooperation with foreign trade,the increasingly perfect market economy system,all kinds of enterprises are also rapid rise and growing,our country economy in this case has realized the relatively high speed of development.But at the same time,some enterprises in the process of rapid ascension has no control over its financial risk effectively,which is in crisis and even lead to bankruptcy case is not a few(cao incident in 2004,sanlu milk powder incident in 2008,huaxia securities,etc.). Small and medium-sized boards of listed companies in our country in recent years the continuous development and plays a more and more important role,however,as mentioned above,small and medium-sized boards of listed companies in the process of development is also facing a huge financial risk. Therefore,how to strengthen their control of financial risk,thus in the fierce market competition continue to survive and gain a foothold,small and medium-sized boards of listed companies are facing a problem to be solved.Good internal control mechanism plays an important role in the development of enterprises,according to previous research has found that the enterprise is difficult to control financial risk is often because the defect of the internal control mechanism. Therefore,to perfect the internal control mechanism to improve the level of enterprise financial risk control is of great significance.In this paper,by adopting the combination of empirical and normative research methods,first introduced the research background,research ideas and research results both at home and abroad,and then to control the financial risk of theoretical basis,based on the internal control theory,and then select financial risk measure(financial leverage coefficient) and the small and medium-sized board listed company internal control evaluation index(whether equity balance degree,chairman and general manager concurrently,the proportion of independent director,executive pay,as related to the annual report if there is a corresponding risk warning and response,whether to disclose the annual expected income and cost,whether the effective budget control,whether the effective performance evaluation,the board of directors meeting times,whether to establish an effective information processing mechanism,the number of meetings of the board of supervisors,whether disclosure of internal control self assessment report),and establish the model,collect data,the application of relevant knowledge of econometrics each evaluation index from the perspective of the empirical study of internal control of financial risk. According to the research conclusion:equity of checks and balances,the appropriate scale of independent directors, the executive compensation incentive, improve the risk assessment mechanism, effective performance evaluation, effective budget control, good information exchange and communication,good internal supervision can effectively reduce the financial risk of the small and medium-sized boards of listed companies,put forward to strengthen the small and medium-sized board listed company financial risk control of some specific measures: improving equity balance degree,increase the proportion of dong alone,strengthen dong alone functions,establishing perfect executive compensation incentive system,strengthening the construction of the quality of financial team,set up the risk consciousness,establishing the financial risk early warning system,strengthen the financial activities of beforehand, strengthen the function of internal audit,the strengthened enterprise performance evaluation of the control and budget control,strengthen the enterprise internal and external information exchange and communication,strengthen the internal control information disclosure regulation,etc.