The Effect Of Government Intervention On The Effectiveness Of Internal Control

China’s related system require enterprises to establish internal control system,that is also needs of business to prevent risks and improve the internal.Because of the particularity of China’s economic system,the internal control system of state-owned listed companies in our country will have different levels of government intervention and influence in the establishment and operation,maintenance and evaluation.This paper analyzes the contents and motivations of government intervention from the relevant concepts and theories of government intervention and internal control,and analyzes the current situation of internal control of state-owned listed companies in China.Based on the internal control of state-owned listed companies,And to make the internal control index of China’s listed companies directly measure the effectiveness of internal control of state-owned listed companies in China,and to explore the real impact of government intervention on the effectiveness of internal control of state-owned listed companies.Furthermore,through the classification of state-owned listed companies in China,according to the real control of the type,the company location of the province and the company’s industry types of three types of comparative analysis of the various types of state-owned listed companies to study the effectiveness of internal control by the real impact of government intervention.First of all,This paper reviews the domestic and foreign scholars in the internal control,internal control effectiveness,government intervention and government intervention on the role of internal control literature,learn from previous research methods and research ideas,lay the foundation for follow-up research.Then,this paper combs the theory of internal control effectiveness and government intervention,defines the connotation of internal control effectiveness and government intervention,analyzes the external intervention of state-owned listed companies from the aspects of principal-agent theory,information asymmetry and external theory Motivation and necessity,lay the theoretical foundation for the following study.Based on the introduction of literature research and theoretical basis,this paper analyzes the current situation of internal control of state-owned listed companies in China and analyzes the mechanism of government intervention on internal control from two aspects,and puts forward that government intervention is effective for internal control of state-owned listed companies The effect of the hypothesis.This paper chooses state-owned listed companies from 2009 to 2015 as research samples and obtains relevant data from CSMAR database and corporate financial report.We use Dibo.Chinese listed company internal control index to measure internal control effectiveness,and use Fan Gang’s government and market relations index to measure the degree of government intervention,and as an explanatory variable,then choose The scale of the firm,the financial leverage,the company’s growth,the level of corporate profitability,the type of audit accounting firm as a control variable,and in accordance with the real control of human type,the company location of the province,the company in which the three types of industry groups regression analysis,start the empirical study on the effect of government intervention on the effectiveness of internal control.Through the empirical study,the following conclusions are drawn:(1)the effect of government intervention on the effectiveness of internal control of state-owned listed companies in China has been reduced;(2)For China’s local state-owned listed companies,the effectiveness of its internal control will be affected by government intervention,and the two were negatively correlated;(3)The effectiveness of the internal control of state-owned listed companies in the general competitive industry is less than that of other types of industries.The government intervention of the public security industry has a strong impact on the effectiveness of internal control.(4)The effectiveness of the internal control of state-owned listed companies located in the eastern provinces of our country is less affected by government intervention,and the internal control of state-owned listed companies in the western region is more effective than government intervention.