The Suppression Effect Of Internal Control On Hollowing Behavior

The encroachment on the interests of small shareholders and tunneling behavior by controlling shareholders is the hotspot of the academic community.From the perspective of power,this paper studies the distribution of control rights and private benefits of control within the enterprise.This paper analyzes the internal control of the enterprise and the control right from the perspective of power,from the management control and the control of the major shareholders and the actual controller of the two levels of analysis of the internal dual principal-agent issues,focusing on the internal control The suppression of the hollowing out behavior carried out by the large shareholders and the actual controller based on the control of private interests.In this paper,we study the following three contents:(1)From the perspective of power,the paper analyses the control right of enterprise,the personal gain of control and the control of private interests of control.(2)From the perspective of information,the paper analyses the development of internal control from the power control to information control;(3)This paper examines the inhibitory effect of tunneling behavior by internal control.The conclusion is that the internal control is an important governance mechanism to suppress the tunneling behavior by controlling shareholders.Information is the key variable of the private benefit of control.Effective internal control can improve corporate governance and enhance the transparency of information,and thus to suppress the tunneling behavior.The audited information of internal control can better reflect the inhibitory effect on the tunneling behavior.Empirical results shows that standard unqualified audit report of internal control can inhibit the tunneling behavior of the actual controller significantly.Equity balance can inhibit the tunneling of the large shareholders and the actual controller.The balance mechanism of shareholding has good control effect.