Relationship Between Internal Control And Management Agency Costs

Agency costs of various forms exists in every industry, and agency costs are based on management agency and to specific performance, if unchecked will lead to more unnecessary losses to the enterprise. The internal control is a topic of enduring penetration in all walks of life, in an increasingly competitive economic environment is very important. But internal control in this large background TMT industry and managers of listed companies has a kind of relations agency costs, how to establish a sound internal control moderate, internal control and how to further improve consolidation affects managers agency costs, which will be the issue this paper aims to explore.Firstly, on the basis of previous academic studies conducted to collect and classify and organize documents, and to be a comprehensive description of the evolution of the internal control and its contents, and the cost of generating the proxy manager to explain the reason, the concept of TMT sectors were expression, leads to progressive form below and do a solid theoretical groundwork for empirical below; Then, do the review of internal control and management of quantitative indicators of agency costs, and leads to the index system to be used in this thesis, and come up with the thesis hypotheses Multiple regression models. Followed by the scientific grouping samples to the motherboard, the SME board and GEM three blocks to an explanation of the differences between the different sections, and then to the company size, debt ratio and time to market are three main control variables grouped preliminary exploration roughly between variables for the next more accurate empirical guidelines to describe a large direction. Finally, the empirical results and conclusions for improving internal control measures, mainly from four aspects of the internal environment, risk assessment and control activities, information and communication, internal supervision, for a listed company TMT industry to propose a solution.The main conclusions of this thesis are: Internal controls have significantly inhibited the dominant manager agency costs, that is improving the quality of internal controls that can effectively control manager dominant agency costs incurred; internal control agency costs are also recessive inhibition, but not significant statistically. Based on the above can draw to the conclusion that improving the internal control system can effectively control the appearance of management agency costs.