An Empirical Study On The Effect Of Chairman Characteristics On The Effectiveness Of Internal Control

The internal control for the healthy development of enterprises plays a fundamental role,can help companies quickly found and correct in the management of the drawbacks of effective internal control,to avoid errors in enterprises,so as to guarantee the stability of the enterprise management orderly,reduce the risk of the enterprises.In addition,for the audit of enterprise(including internal and external audit),effective internal control can be performed as the basis,to ensure that enterprises can reasonable actions follow the requirements of laws and regulations,ensure the reliability of the financial report.Internal control is a very important means of enterprise management,the success of management is inseparable from the effective establishment and operation of internal control.Our "basic norms of internal control" is specified,the board of directors of the enterprise shall be responsible for establishing and implementing of the enterprise internal control.The chairman of the board is the leadership of directors,so the chairman will certainly have a very important role in the internal control of the enterprise.In this paper,based on the theory of high echelon,principal-agent theory and stakeholder theory,this paper studies the influence of the chairman's characteristics on the effectiveness of internal control.This paper uses Dibo Index to measure the effectiveness of internal control of enterprises,from the age,gender,education level,working time,the number of shares,chairman and general manager of two duty syncretic characteristics of chairman to empirically test chairman's characteristics of the listed companies in the manufacturing industry to influence on the effectiveness of internal control.The empirical results show that,the chairman of the age,level of education,working time,the number of shares and the enterprise's internal control effectiveness is significantly positive correlation.The chairman and general manager of the two post syncretic and the effectiveness of internal control of the enterprise is a significant negative correlation.And chairman of the gender and the internal control effectiveness of the relationship is not significant,this may be the number of women in the sample of the chairman is too little.The research of this paper has very important significance on howto increase the effectiveness of internal control from the perspective of the executives themselves.In addition,it also has certain reference significance for the appointment of the chairman of the listed company.