Research On The Influence Of Internal Control Effectiveness On Enterprise Performance From The Perspective Of Ownership Structure

Since the establishment of the capital market in China,firm performance has always been the focal point of every stakeholder,how to advance firm performance and accelerate the sound development of business firms is the focal point of academic research.Nevertheless gradually along with our country economic structure innovation and development of enterprise commercial activities,internal and external surroundings faced by firms have become more intricacy and difficult to predict,the existing internal control system is difficult to effectively cope with complex internal and external surroundings,internal control failure events still happen often,such as Enron,Yinchuan fraudulent events,CAO bankruptcy,and in 2018,the China banking regulatory commission report of Shanghai pudong development bank branch in Chengdu as the blind go after of productivity,through illegal adversely classified credits to 1493 shell enterprise credit $77.5 billion to cover up bad loans,the occurrence of these incidents will cause rockribbed impress to firm performance,in the meantime shows that the study of internal control effectiveness is still very indispensable and imperative,so the survey how to improve the effectiveness of internal control is of great significance to advance firm performance.Study on internal control and firm performance,most scholars are based on the basis of an analysis of the firm governance how to optimize the internal control,ameliorate firm performance,equity structure is the basis of the firm management structure,nevertheless,affect the internal control,in turn,affects firm performance,so this text from the perspective of equity structure to study the influence of internal control availability on firm performance.Time of development of our country small and medium-sized panels,the gem is 13 years to 8 years,the development time is relatively short and mainly small and medium-sized firms,small and medium-sized panels,the gem listed companies relative to the main board listed company in terms of its ownership structure,still need to unremittingly elevate the internal control system,promotion firm's performance and bigger interspace,and for the study of the theory of the small and medium-sized panels,the gem is not abundant enough,particularly the small and medium-sized plate in the viewpoint of ownership structure study,the gem internal control effectiveness still small impact on firm performance,therefore,this paper is of great materiality for second to none the shareholding structure of small and medium-sized boards and gem listed firms,and perfecting their effectiveness of internal control and firm performance.On the basis of teasing and summarizing the correlative documents,this paper takes the principal-agent theory and signal transfer theory as the theoretical support for the study,and puts forward correlative hypotheses in proportion.In 2012-2016,832 small board,gem firms a total of 15808 data of listed firms as illustrations,using Excel to settle data and to measure effectiveness of internal control,then use SPSS 22.0 equity construction under the study of the positive analysis,the effect of internal control effectiveness on firm performance.The empirical findings show that:(1)the more valid the internal control,the better the firm performance;(2)the lower the ownership concentration,the greater the impact influence of internal control effectiveness on firm performance;(3)the higher the equity balance degree,the greater the positive impact of internal control effectiveness on firm performance.(4)in the control variables,the size of the firm is observably inverse correlated with the firm performance;The asset-liability ratio has a observably inverse correlation with firm performance;The ratio of independent directors is observably correlated with firm performance.According to the peroration,this paper suggests that small and medium-sized boards and gem listed companies should improve the performance of firms from the following aspects: First,perfect the equity structure and form valid balance mechanism;Second,strengthen internal control construction and improve the availability of internal control;Third,keep rational capital structure and lower asset-liability ratio;Fourth,we will strengthen the independent director system and raise the ratio of independent directors.