Internal Control,Enterprise Discipline Inspection And Executives Corruption Governance In The State-owned Companies

Since the 18 th CPC National Congress held in November 2012,with the intensification of the anti-corruption efforts of the Central Discipline Inspection Commission,many state-owned enterprises have stepped up their efforts,which has aroused more and more attention to the corruption of corporate executives.Corruption of executives not only restricts the development of enterprises,but also brings serious disaster to the country.and the society.In order to promote the healthy development of enterprise,maintaining social harmony and stability,anti-corruption governance is imminent.In the "Internal Control-Integration Framework","Enterprise Risk Management-Integration Framework" issued by the COSO Committee and the most authoritative regulation of internal control in China "Basic Internal Control Norms ",these three reports have stressed that an important objective of internal control is: to ensure the legal compliance of business management.In the context of China’s special system,whether we can find a reasonable way to merge the discipline inspection and the internal control system of enterprises,and give full play to the advantages of both,will become a new research topic.Under this background,this paper examines the relationship between internal control,enterprise discipline inspection and the corruption of senior executives through the empirical study of the state-owned listed companies from 2010 to 2015 in China.We divide the executives corruption into explicit and implicit corruption,then test the relationship between internal control and executive corruption,the relationship between the enterprise discipline inspection and the executive corruption respectively.Based on the perspective of integration,this paper examines the mediating role of disciplinary committees involved in governance and the involvement of different disciplinary committees in the relationship between internal control and senior management corruption.Finally,the contribution of each explanatory variable to the prevention of senior executives’ corruption is measured by the Shapley Value Decomposition method,and the influence of the main explanatory variables on the governance corruption of senior executives is also measured.The results show that:(1)The effective internal control can inhibit the occurrence of executive corruption.In state-owned enterprises,this inhibitory effect is significant not only in explicit corruption but also in implicit corruption.(2)The involvement of discipline inspection committee,that is,the supervision of the discipline inspection commission of state-owned enterprises,can also effectively suppress the occurrence of corrupt behaviors of senior executives.Specifically,for the implicit corruption and dominant corruption,this regulatory role in the state-owned enterprises have shown significant.(3)The supervision of disciplinary committee of state-owned enterprises has a positive regulatory role in the process of internal control to curb the corruption of senior executives.That is to say,the Commission for Discipline Inspection of State-Owned Enterprises is involved in corporate governance,which can reinforce the inhibitory effect of internal control on the corruption of senior executives,thus further reducing the incidence of corruption.On the other hand,in the control of explicit corruption,the positive regulatory role played by the discipline inspection commission of state-owned enterprises is not significant.On the aspect of implicit corruption prevention and control,the positive regulation of state-owned enterprise discipline commission is very significant.In short,among the state-owned enterprises,the participation of state-owned enterprises Commission for Discipline Inspection can effectively enhance the role of internal control to curb hidden corruption.The research contribution and significance of this paper are: through the integration of the perspective of internal control and corporate discipline inspection supervision unified in the anti-corruption theory system,to study the two governance corruption in the role of the mechanism and mode of action.The paper discusses the way to integrate the supervision of enterprise discipline inspection committee and the internal control system,so as to give full play to the role of the two in the enterprise.This is the integration of perspective to expand the relevant internal control and corporate governance of corruption in the research scope and vision,the formation of a useful supplement to the existing theoretical results.In practice,the measures to prevent corruption of corporate executives,to strengthen corporate governance corruption work,and promote enterprises to strengthen their own internal control system construction and improvement of the community to promote the correct understanding of the role of the Enterprise Commission for Discipline Inspection,and then give full play to the Enterprise Commission for Discipline Inspection supervision role.