Research On The Influence Of Internal Control Quality On Enterprise Commercial Credit Financing

Since the 21st century,China's market economy has been booming,and a large number of enterprises have sprung up rapidly,accompanied by the rapid growth of market economy,has gradually entered the era of rapid development.However,in order to meet the pursuit of enterprises continuing to expand the scale and enhance the enterprise performance goals,there needs a large number of circulating funds.At this time,whether to get enough financing and the way to financing is urgently to be solved.Although the government has taken relevant measures to help enterprises overcome the shortage of funds,the problem of financing has not yet been effectively alleviated.Therefore,how to support enterprises to solve financing problems and adopt what kind of financing methods to accelerate the speed and efficiency of enterprises' financing has become one of the hot topics in academic research in recent years.So far,the research related to corporate financing in China mainly focuses on bank lending,while the research on the financing model of commercial credit is relatively few.But our country's financial market is not mature,the financial system is unstable and incomplete,the distribution of credit resources in the market is unevenly and the bank "credit rationing"phenomenon is widespread.Many enterprises are limited by internal and external conditions,facing various degrees of difficulties in obtaining bank loans,and always in a business continuity crisis.At this time,based on the alternative financing theory and extensive relationship between enterprises,commercial credit financing as alternative financing way of bank credit has become the same focus in theoretical and practical circles.Considering how to expand the scale of the enterprise's commercial credit financing is helpful for alleviating the pressure of the loan,improve enterprise's capital flow and reduce transaction costs,plays an important role in market economy's long-term healthy development.Combing the existing literature,the research about the influencing factors of commercial credit financing mainly focus on enterprise's scale,operating conditions,institutional environment and so on,unfortunately,research from the perspective of the quality of internal control is rarely seen.In fact,based on the research in the western capital market,we found that the quality of the internal control can reduce the information asymmetry between suppliers and enterprises to a certain extent,ensure the reliable of financial information,enhance the trust between the two parties which is precisely the foundation of establish business credit between enterprises and suppliers.Therefore,whether the quality of internal control can play a role in enterprises'commercial credit financing and how does it work is worth exploring deeply.This article from the perspective of internal control quality,based on previous literatures and theories,put forward the main research hypothesis of this article,then construct the multiple linear regression model for empirical test used the 2011-2016 of all A shares listed companies' data to explore the influence of internal control quality on enterprise commercial credit financing,giving the corresponding conclusions and policy suggestions.The study found that:Firstly,The quality of internal control of enterprises is positively related to the scale of commercial credit financing,it means the higher the quality of the internal control,the greater the amount of commercial credit financing that enterprises can obtain.Secondly,when the nature of the enterprise ownership is not at the same time,the non-state enterprises compared with state-owned enterprises are harder to get access to the suppliers' trust,its commercial credit financing ability is weeker,therefore,in non-state enterprises,the internal control quality plays a greater role for obtaining more commercial credit financing than the state-owned enterprise.Finally,when the concentration of suppliers in the industry is relatively high,the smaller the scale of commercial credit financing it can get,however,the less effective the internal control quality do for getting business credit financing than the industrial enterprises with less supplier concentration.