Internal Control, Regulatory Environment,and Management Agency Costs

The separation of modern enterprise system enterprise ownership and management,has brought convenience,but also produced certain agent problems.Agent issue has a strong destructive powder on the Chinese stock market,which also interferes the normal operation of listed companies,detrimental to the interests of investors,and threats the health development of the economy market.In the market economy,the internal control of enterprises plays a key role in their operation and development,which has penetrated into different kinds of industries.However,how to control the internal and external institutional environment of enterprises in this relationship? How to improve the internal control system and standardize the institutional environment,so as to reduce the management of the enterprise.But the current study is not clear.All of these are to be explored in this thesis.This thesis first describes the economic consequences and influencing factors of internal control information disclosure and agency cost under the premise of combing and speculating the relevant literature of predecessors.Secondly,it expatiates and analyzes the concept of agency cost and internal control and related theories,and provides theoretical support for the original hypothesis and empirical analysis.Then,the hypothesis and multiple regression model are put forward.In the empirical part,the author choose the auditing quality,the degree of marketization,the ownership structure,and the different internal and external institutional environmental indicators to classify the samples of the manufacturing enterprises.And whether the inhibitory effect of the internal control on the agent cost is different in the different institutional environment.It provides direction for more accurate evidence.Then,the audit quality,the degree of marketization and the property right structure as the adjustment variables,which are introduced in regression equation,and draw the conclusion through the correlation coefficient of the interaction.Finally,this thesis from the four aspects which are the internal control system,optimizing the property rights structure,improving the quality of the audit and speeding up the process of marketization,to recommend countermeasures for manufacturing industry.The main conclusions of this thesis are as follows:(1)The internal control has the effect of restraining the agent cost of the management,that is,the internal control system can deal with the cost of the management agent;(2)Compared with the high audit quality enterprise,the performance of the internal control is more significant in low audit quality.(3)Compared with the developed regions,the effect of internal control on the cost of agency is more significant in the enterprises in the less developed regions;(4)Compared to non-state enterprises,the effect of internal control on agency costs is more pronounced in state-owned enterprises.