The Study On The Relationship Between Internal Control And Corporate Governance Of Listed Companies

Modern enterprise is made up of a series of agency relation.Internal control and corporate governance is the two mechanisms to solve the problem of agency.They have been the important research filed from the beginning.There are two main points of view about the relationship between them.The first view is that corporate governance is an environmental element of internal control.The second one is that they are interactive.This article agrees with the second one.With the financial crisis in 2008,the collapse of a large number of international companies and banks,people understands the risk more clearly.How to control the risk effectively becomes the focus of the company.As the two important mechanisms of controlling risk,the importance of internal control and corporate governance is obvious in the development of the company.However,there are still many problems in the development of the company,such as the weak sense of risk and the imperfect corporate governance mechanism.To solve these problems,we should start from both internal control and corporate governance.The relationship between internal control and corporate governance is closely related.Therefore,the interaction between internal control and corporate governance can reduce the risk effectively and contribute to the long-term development of the company.Domestic and foreign experts study the relation of internal control and corporate governance through the theoretical perspective.It is less to study the relation by empirical methods.Based on the scholars' viewpoints,this paper analyzes the relationship between them by combining normative and empirical methods.First of all,this paper introduces the related theories and the interaction relationship between them.Secondly,this paper studies the correlation between internal control elements and corporate governance by the method of factor analysis and regression analysis.It draws empirical conclusions.Finally,based on the interaction between internal control and corporate governance,this paper puts forward the countermeasures and suggestions to perfect the internal control and corporate governance.Its purpose is to improve the riskguiding mechanism and avoid the harm of the interests of the company's stakeholders.