The Empirical Analysis Of How Internal Control And Corporate Governance Influence The Firm Value Of Listed Company

As an important part of the market economy system,the value of enterprises is an important basis to judge whether the enterprise can get a place in the fierce market competition and realize the sustainable development of the enterprise.The realization of companies' values is in coherence with the healthy and effective company management system and the completed internal control system.It is not common to see the heavy loss or even disasters caused by the invalidation of company management system and the completed internal control system.The collapse of the Bank of Paris,the Enron event of US,the fake account made by clerks of Swiss Bank,Sanlu Toxic Milk Powder event of China and the occupation of capital of Czech Joint-stock company appear one by one,leaving painful experience and lessons,which shifted emphasis to the effective modification of the companies' management system,fully development of the precaution effect of internal control to the companies' risk and the improvement of companies' values.Observed from the existed researches of company values,domestic scholars mainly focused on the social responsibility of companies,shares incentive,the stability of accounting,the right of managers,the single source of companies' investment.Although there are different theories about companies' management and values,the connection between internal control and companies' values.Seldom do they put these two into one to consider the integral effect to the companies' values.Consequently,this author takes this chance to do some researches.There is a review about the company management,internal control and the company values internally and externally at first.Then on the basis of agency of entrust,the dissymmetry of information and the effective market theory,the author raises the research hypothesis and erects a research model.The public company data from 2011 to 2013 of Shanghai and Shenzhen A shares is chosen as sample.At last,881 public companies,not including financial industry,real estate and ST companies,prove the relationship between company management,internal control and company values.Furthermore,the author analyzes the effect of the inter-relationship between company management and internal control to the company values.Through demonstration analysis,a conclusion has been reached that: the company management and company values are positively correlated;The effectiveness of internal control and company values are positively correlated;The inter-relationship betweencompany management and internal control is in coherence with company values.In the essay,as for company management:(1)The higher of share concentration ratio is,the more effective of strong stock holders playing the role of company supervising and maintaining information advantage which results in the improvement of company values;(2)The higher ratio of independent directors is,the more effective the supervising by independent directors is,which means the increase of company values is going on;(3)The chairman and manager can effectively lower the cost of the discordance of the two roles during work,which results in the improvement of company values.