The Study Of The Relationship Between The Listed Company’s Internal Control And Irregularities

In recent years, the continuous violations of listed companies that severely disrupted the healthy and stable operation of the securities market, which greatly damaged the legitimate rights and interests of minority shareholders. Domestic and foreign experience tells us that situation occurs sophistication and violation of internal control of listed companies is closely related to the internal control system more perfect, the more restricted the company’s violations. Based on this consideration, this paper use from 2004 to 2014 occurred irregularities of listed company’s internal control situation as a starting point for research, empirical research methods, to further demonstrate the relationship between listed companies and internal control violations.This article selected the corresponding paper data from 2004 to 2014 listed companies, eliminate duplication and anomalies in the data, the existence of irregularities selected 671 listed companies and another 671 listed companies do not exist irregularities as samples. Variable will be interpreted as a listed company whether the violation, the explanatory variables as the quality of internal control, the control variable factor as 14 audit observations and net assets per share were descriptive statistical analysis, Logistic regression analysis and variables between groups difference analysis. Finally, this article used the backward stepwise regression method to estimate the parameters of the model. Papers according to principal-agent theory, corporate governance theory, asymmetric information theory, efficient market theory and accounting fraud motivation theory proposed four hypotheses, each hypothesis and verification. After the study, indicating that four hypotheses are true, that a listed company’s internal quality control violations occur and its negative correlation; listed companies are ST and corporate irregularities positively correlated; listed companies were issued with violation Feibiaoyijian positively correlated; Listed companies to disclose internal control self-assessment report and violations was negatively correlated.Conclusions of this study for the internal control of listed companies with clear violations of relationships, improve quality of internal control, reducing illegal activities and ensure the healthy and orderly development of securities market, it has a certain theoretical and practical value.