An Empirical Study On The Effect Of The Ownership Structure Of Chinese Listed Companies On The Effectiveness Of Internal Control

In view of the prominent role of the perfect internal control system design and its efficient execution in improving the scientific and standardized management level and ensuring the enterprises to realize their management objectives, the paper discusses the factors influencing the effectiveness of internal control and its influence by theoretical and empirical research methods It is necessary to clarify the relationship between the ownership structure and internal control, influence the principle, and further enhance the role of internal control through optimizing the ownership structure.Based on the financial data of Shanghai A-share listed companies from 2013 to 2015, this paper studies the basic theories of principal-agent theory and asymmetric information theory, COSO integration framework and risk management framework as the research object. The paper analyzes the influence mechanism and influence path of the ownership structure to the internal control function, and combs the domestic and foreign research literatures on the ownership structure and internal control effectiveness and evaluates the internal control effectiveness of the shareholding structure and the internal control effect. Based on this, five research hypotheses are put forward, which take the efficiency and effect of the business activities, the real integrity of the financial report and the legal compliance of the management as the explanatory variable, the controlling shareholder's attribute, the largest shareholder's shareholding ratio,, Equity balance and management shareholding ratio are taken as explanatory variables. The earnings per share and the total assets at the end of the year are used as control variables. The financial data are collected and the empirical research model is constructed. Using descriptive statistical analysis, correlation analysis and Regression analysis validates the hypothesis. Finally, in view of empirical conclusions, it is suggested that Chinese enterprises should optimize the ownership structure and internal control.The empirical analysis results show that the state-owned holding enterprises are not good, but the financial reports are more reliable. The higher the proportion of institutional investors, the more conducive to the construction and effectiveness of internal control system; the higher the proportion of management, The greater the proportion of the largest shareholder is not conducive to the listed companies to play the role of internal control.Finally, according to the research conclusion, the author puts forward some counter measures and suggestions:In the aspect of optimizing the ownership structure, China should continue to break the state-owned nature of the listed companies, actively increase the participation enthusiasm of the institutional investors, and control the proportion of the largest shareholders. Equity checks and balances, and to encourage the management to give appropriate holdings. To improve the internal control system, while actively improving the internal control information disclosure mechanism, strengthen the external supervision environment construction, for example, improve the internal control evaluation accountability mechanism.