Correlative Analysis Of The Internal Control And Financial Performance Of Listed Companies

With the appearing of financial scandals in China and abroad, it has forced the countries to start thinking about the root of these problems. In 2002, the United States announced the Sarbanes-Oxley Act(hereinafter referred to as the SOX Act). The act immediately aroused the concern of the world and companies around the world begin to realize the importance of internal control of the enterprises. The basic norms of internal control also have been presented in China in 2008. At the same time, the further study of internal control began to deeper than before in China From for a large number of the research of different countries, we can analyze the number of research, whether internal control affected the enterprise’s financial performance,is a little.Most of the studies of internal control are based on audit perspective in China and abroad. With the development of awareness of internal control, some scholars begin to realize internal control as a kind of management method for development of the enterprise has a more important practical significance. Enterprise culture is soft power of enterprise and reflect the value of enterprise. Enterprise culture is a moral standards coordinated business goals and management concept. When there is defect of enterprise internal control, corporate culture become the norm to guide the behavior of enterprise and the staff. In the management perspective, this paper studies the influence of the internal control as a management method to financial performance of enterprise with the enterprise culture.The objects of research of the paper are listed companies which listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange. On the analysis of double principal-agent theory and management control theory, the paper puts forward six hypotheses. The enterprise’s financial performance need to be explained. The empirical research took the enterprise’s financial performance as dependent variables, and then took control environment, enterprise culture, risk assessment, control activities, information and communication and internal supervision as independent variables to prove the validity of the hypothesis. Finally, according to the empirical conclusions, the paper puts forward suggestions for the improvement of internal control in our country.