Media Attention,Executive Compensation And The Effectiveness Of Internal Control

Nowadays,internal control has become a very important part of the construction of modern enterprise system,it is the process of providing a reasonable guarantee for the realization of the business operations,financial reporting and compliance objectives.However,the construction of internal control standard in our country started relatively late,the relevant rules and regulations are not perfect,and there are many problems in the construction of internal control.In 2008,the five ministries including the Ministry of Finance jointly promulgated the "Basic Norms for Internal Control of Enterprises",and in 2010 jointly issued the "Guidelines for Supporting Internal Control of Enterprises",it marks the establishment of our country's internal control system.This shows that our government and regulators pay more and more attention to the construction of internal control.Therefore,it is very important to study the influencing factors of the effectiveness of internal control.Now society is in an information age.The development of mass media and information makes the role of media in social life more and more important.Under the circumstance of the separation of management rights and ownership,the media as an important external supervision mechanism has a huge impact on the internal governance structure and the effectiveness of internal control.Under the media attention,the issue of executive compensation in recent years has also been constantly heated and reported.The phenomenon of "sky-high pay" and "zero pay" have also drawn the attention of the community for a time.Reviewing the existing literature,the research on the effectiveness of internal control mostly stays in the perspective of internal governance.Few scholars have discussed the impact on the effectiveness of internal control from an external perspective,and very few articles specifically focus on the aspects of executive incentive Departure to study the impact of executive compensation on the effectiveness of internal control.Therefore,this article introduces the media attention and executive compensation,trying to explore the impact of the two on the effectiveness of internal control based on the domestic and international relatedresearch,and more innovative research on the mediating role of executive compensation in media attention and effectiveness of internal control.Firstly,this paper introduces the research background and research significance,expounds the research methods and research contents of this paper,and explains the place where this paper is more innovative.Then it reviews the domestic and foreign related literatures,and makes a literature review from the following three aspects: the media attention and the influence of executive compensation on the effectiveness of internal control and the influence of media attention on executive compensation.Secondly,this article defines the concept of internal control effectiveness,executive compensation,and media attention,and elaborates related theories to provide the theoretical basis for the following empirical research.Again,this article describes the definition of variables used in this study,put forward hypotheses and build related models.Using the listed companies of Shanghai and Shenzhen A-shares in the real estate industry from 2013 to 2016 as the research samples,the descriptive statistical analysis,the correlation analysis and the regression analysis were conducted to draw the conclusion of the empirical study.Finally,the conclusions obtained in this paper through empirical research are consistent with the original assumption that both executive compensation and media attention can significantly enhance the effectiveness of corporate internal control,and executive compensation plays a role in media attention and internal control effectiveness.effect.Combined with the conclusion of the empirical analysis,this article puts forward some suggestions to listed companies from three aspects:internal control self-construction,media attention and executive compensation.