A Empirical Study On Internal Control Impact On The Per Formance Of Media Listed Companies

Most of the listed media companies in China are reformed by the state-ownedinstitutions, with the prevalence of state-owned shares being the only big holder andproperty rights defects. This determines the non-efficiency of big State-Ownedshareholder supervision to managers. Moreover, the lack of external marketconstraints such as laws, internal control has become a very popular phenomenon inthe Chinese listed media companies.While from the perspective of domestic research, current scholars’ research oninternal problem are mainly centering on State-owned firms, the studies concerned onlisted media company are still very few in academe. Moreover, judging from therecent literature, domestic studies of insider control problem mainly based onqualitative analysis.Compared with the perfect internal corporate governance and the externalsupervision in developed western countries, the listed media companies in China facespecial instituional environment. Such as the distemperedness of property rightsystem, unbalanced of ownership structure and the imperfect protection to investors.Therefore corporate governance and internal control theories summarized bydeveloped western countries maybe inadaptable for Chinese listed media companies.In view of this, the study takes15Chinese media companies listed on Shanghaiand Shenzhen stock in the period of2002-2011as samples, applies factor analysismethod to evaluate the level of the internal control of this listed companies, andbuilding a panel data model. Then we take the ownership structure, firm size,financial leverage as controlled variable in the analysis. The result suggests that thelevel of internal control is passively related to company performance.Finally, four advices were given to prevent “inside control” Phenomenon andimprove the listed media company performance. This study wishes to provide somereferenced value for reform of corporate governance for Chinese listed mediacompanies.