Ownership Concentration Degree,Effectiveness Of Internal Control And Enterprise Value

Following the development of global economy and increasing competition,some financial scandal events have been exposed,which reflects corporate governance should be improved and facilitated.Excessively concentration or unduly dispersion structure of stock right could affect the effective of corporate governance,internal control should be a headstone of corporate governance and could also affect the effective of corporate governance and further influent the promotion of company's value.In the light of particularity of socialist market economy in China,listed state-owned companies have significant difference with listed civilian-run companies on character and structure of stock right,operational target,distribution management,governance mechanism and risk competition.In this context,it is theoretical and practical significance to study the relationship between the effectiveness of internal control,ownership concentration and enterprise value of listed companies with different equity characteristics.This paper study the effectiveness of internal control and enterprise value,ownership concentration and enterprise value,and effectiveness of ownership concentration on internal control and enterprise value through grouping all A-share listed companies based on nature of stock right from 2013 to 2016.Return on equity(ROE)as a measure of enterprise value,the internal control index of DIB measures the effectiveness of internal control.The share of the top ten shareholders as an alternative indicator of ownership concentration.After data study of state-owned and civilian-owned companies,this paper acquired the following conclusion: 1.There is a significant positive correlation between the internal control effectiveness and the enterprise value at all listed A-share enterprises.2.In the relationship between ownership concentration and enterprise value,the result is different due to the different ownership nature.There is a positive correlation between ownership concentration and enterprise value in non state-owned enterprises,while the relationship between the two is not significant in the state-owned listed companies.It indicates that the relative concentration of share plays an important role in the increase of enterprise value in non state-owned enterprises.3.In the non state-owned enterprises,the relative concentration degree of the enterprise's equity will have a positive regulating effect on the relationship between the effectiveness of the internal control and the enterprise value,which will increase the enterprise value.However,in the state-owned enterprises,it may be because of the particularity of the ownership of state-owned enterprises,which leads to the improvement of the relative concentration degree of the equity,and this ownership concentration has a weak effect on the relationship.According to the research conclusion,this paper presents several suggestions on the state-owned enterprises and non state-owned enterprises in the aspect of ownership structure and internal control and corporate governance.For example,state-owned enterprises need to clarify property rights and to allow full play to the non-state shareholders in the role of top management on state-owned enterprises.Non-state-owned enterprises as the shareholding structure should be more scientific and reasonable,meanwhile they should perfect and improve the level of corporate governance as well,especially to strengthen the construction of internal control and internal audit,and increase enterprise value.