An Empirical Study On The Impact Of Internal Control And Ownership Concentration On Enterprise Performance

With the development of the reform of the economic system,market is playing a more crucial role in the distribution of resource.And competition among main market players is becoming unprecedentedly intense.The view of strategy of enterprises is shifting from valuing the extension of capital and scale to strengthening the emphasis of the internal governance mechanism.Especially,nowadays,in the context of economic downturn,traditional external routes like broaden business channels are blocked.Therefore,it becomes an important direction of our research that how to improve enterprise performance level internally.Internal control system is conducted by all staff of the enterprise,aiming at the process of reaching its control objective.It should provide the enterprises with an effective guarantee to improve operating efficiency and effects and promote the development of strategy.Ownership concentration and some other ownership structure factors,as an important basic of enterprise interior environment,reflects the risk bearing level and interest distribution of an enterprise.It can bring direct impact on corporate governance and operation of enterprise internal mechanism.Meanwhile,it can also influence enterprise performance level and market value.Thus,it is worth of probing that whether internal governance mechanism can play an ideal result by optimizing ownership structure,and then improve enterprise performance level in such intense competition nowadays.Based on the above points of view,this dissertation took empirical research method,discussed about the effect and impact that internal control and ownership concentration bring to enterprise performance.First,the thesis reviewed the literature at home and abroad from several viewpoints,which mainly include internal control and enterprise performance,ownership concentration and enterprise performance,both the two formers and enterprise performance,and from which we tracked out some blank in the research of ownership concentration basic moderator.Second,we provided theoretical support for the following research hypothesis and empirical analysis based on principal agent theory and incomplete contract theory.Then hierarchical regression model was built for regulated variable by setting up internal control quality evaluation index system and introducing ownership concentration.Paneldata regression test and stability test were taken with panel data regression model to examine the relations between internal control,ownership concentration,each and the interactive items of them with the enterprise performance level in the context of the whole sample and key profession.Finally,tabling relevant proposal according to the conclusion obtained from empirical analysis.The empirical results show that internal control can make positive promoting effect to enterprise performance level,which means internal control of high quality could enhance the enterprise performance level;ownership concentration could make positive impact observably on the whole sample enterprise performance but the difference is large among different industries;under the moderating effect of ownership concentration,internal control of high quality could promote the performance level of the enterprise which possesses ownership concentration of a high level.