Empirical Research On The Influence Of Corporate Gover Nance To Internal Control Deficiencies Of Listed Companies

A series of financial scandals like Enron, World Com all suggest to a certain extent a breakdown in corporate governance and the failure of the internal control system in listed companies. Generally speaking, the relation between corporate governance and internal control is closely related. In effective corporate governance environment, internal control can play a role. Therefore, the research on the influence of corporate governance to internal control deficiencies contributes to strengthening corporate governance and improves the internal control standards.The enactment of 《Supporting Guidelines For Enterprise Internal Control》 marks the enterprise internal control standard system has basically set up, and the disclosure of internal control deficiencies enters mandatory disclosure stage. The paper takes it as an opportunity to analyze corporate governance and internal control deficiencies in listed companies related issues from both theoretical and empirical aspects. Theoretical analysis, first of all, on the basis of carding the research status at home and abroad, clearly defines corporate governance, internal control and internal control deficiencies, and expounds the relevant theoretical basis; Secondly clarifies the evolution course of information disclosure system of internal control definition in listed company; Finally analysis the influence mechanism of corporate governance of listed company internal control deficiencies. In empirical part, the object of paper is the Shanghai A-share listed companies counted 816 in 2013. The paper selects eight independent variables, a control variable and a dependent variable and uses multiple linear regression method to analyze.The empirical results show that the more reasonable and perfect corporate governance, the more effective internal control; the board of directors and board of supervisors largely is useless; listed companies where the conditions for special treatment pay more attention to the improvement and perfection of internal control; the condition of internal control deficiencies preliminarily is judged by means of audit opinion by CPA. In view of this, the paper proposes that many measures should be taken to improve corporate governance, reduce internal control deficiencies, improve the effectiveness of internal control, such as adjusting the reasonable ownership structure, perfecting the structure of the board of directors, strengthening supervision of board of supervisors, strengthening government regulation and supervision from social intermediary agencies.