Acnoalysis Of Influence Of Family Listed Corporate Governance Structure On Effectiveness Of Internal Control

Family company has experienced200years since its generation. During the200years,family companies have a significant influence on the listed companies,which ledto the big development of the world economy.Research shows that in US90%of firmsare family businesses,about40%firms in the fortune500is in the charge of householdsor is managed by the operators.However,family firms in china also account for a largepercentage in all listed companies. However,with the development of the familylisted companies,the problems such as cronyism,irrational structure of theshareholding, holding the shares of the big shareholders are very serious, the root ofwhich is the special corporate governance structure of the listed family.This problemsled by the governance structure have a great influence in the effectiveness of the internalcontrol,which lead to vague internal mechanism.If these problems can’t be solvedproperly,which can be the main reason for the failure of the family firms,this will havea great impact on the running efficiency. This paper selects the family of the listedcompanies as the research object, finds some problems related to the family governancestructure of the listed firms through the empirical studies and puts forward somesuggestions for family listed companies to study.This paper mainly adopts the method which combine the research methods and theempirical analysis.First of all,the paper defines the family firms,the governancestructure of the family listed businesses and the effectiveness of the internalcontrol.Then we analysis the impact of the internal control’s effectiveness which is ledby the governance structure of the family firms,which carry out empirical analysisthrough shareholding structure, board of directors,board of supervisors and managersfour levels.This paper selects the family listed businesses2010to2012sample as theanalysis object,uses the principal component analysis method to the definite of theinternal control variables,and then calculate the internal control effectiveness compositescore. Then, we analysis the9variables to descriptive statistics and regressionanalysis, get the result to propose for relevant corresponding suggestions.The results show that in the family listed companies5explanatory variables(equity restriction,the proportion of independent directors of the Board,the number ofSupervisory Board,the Supervisory Board meetings) have a significant positivecorrelation with the effectiveness of the internal control.3interpretation variables (ownership concentration,the ratio of cash flow rights and control,the concurrency ofthe chairman and general manager) have a significant negative correlation with theefficiency of the internal control.1explanatory variable (the top three executive totalremuneration) has no significant correlation with the effectiveness of the internalcontrol.