The Empirical Research On The Relationship Between The Effectiveness Of Internal Control And The Performance Of Mergers And Acquisitions In China's Listed Companies

With the development of mergers and acquisitions of listed companies,mergers and acquisitions between enterprises are facing more and more risks,making the risk of mergers and acquisitions between enterprises further increasing.And the improvement of internal control can greatly reduce the risk of mergers and acquisitions between enterprises,especially the disclosure of internal control information of listed companies increasingly subjecting to the concerns of the SFC and the majority of investors.This paper studies the relationship between the effectiveness of internal control of listed companies and the performance of mergers and acquisitions,and reveal the impact of the internal control of listed companies and the validity of their five factors on the performance of mergers and acquisitions.It is important for the construction of internal control system from the perspective of mergers and acquisitions.This paper takes the mergers and acquisitions events of listed companies as a sample to study the performance of mergers and acquisitions in 2013-2015.Based on the comprehensive review of domestic and foreign research theories and scientific research achievements,this paper analyzes the internal control of China's listed companies and its five elements according to the relationship between internal control and the validity of its five factors and the performance of mergers and acquisitions of listed companies.How does effectiveness affect the performance of mergers and acquisitions of listed companies.This study evaluates the effectiveness of internal control with internal control disclosure information and specific indicators under the internal control system.Based on the definition of internal control effectiveness,this paper analyzes the effect of internal control and its five elements on the performance of mergers and acquisitions in order to obtain the internal control of the internal control.Control and the effectiveness of its elements and the relationship between the performance of mergers and acquisitions,so as to improve the effectiveness of listed companies to improve the proposed internal control recommendations.In this paper,these cases of mergers and acquisitions are based on the perspective of "the empirical study on the relationship between the effectiveness of internal control and the performance of mergers and acquisitions in China's listed companies".According to the "internal control integration",this paper defines the evaluation index system of the internal control effectiveness of the listed companies in China,including the overall one-level indicators and the control environment,the risk assessment,the control activities,the information and communication and the internal supervision.Indicators and 23 three-level evaluation indicators.Then,combined with these evaluation index system,according to the listed company internal control information disclosure status of the indicators assigned to,and then use the entropy method to calculate the weight of the indicators.Finally,the relationship between the effectiveness of internal control and its five factors and the performance of mergers and acquisitions is analyzed by linear regression.The empirical results show that the effectiveness of the overall internal control has a significant correlation with the performance of mergers and acquisitions,indicating that effective internal control can play a positive role in the performance of mergers and acquisitions.In addition to the risk assessment,there are significant correlations with the performance of mergers and acquisitions relationship,the risk assessment may be due to the lack of business in this part of the lack of implementation of the reasons for the link to the performance of the role of mergers and acquisitions is not obvious.