The Intermediary Effect Research Of Internal Control On The Relation Between Ownership Structure And Corporate Performance

Under the new economic normal,the increase of capital mobility is a good opportunity for the development of China's capital market.As listed companies play a significant role in the capital market,issues about the listed companies' ownership structure,the effctiveness of internal control and the corporate performance caught more and more scholars' attention.Ownership structure is the foundation of corporate governance,which can effect on the quality of internal control and the corporate performance.Internal control is one of the important tools for evaluating the corporate governance environment and plays an important role in achieving the company's operational goals and improving company performance.In recent years,the emergence of some listed companies scandals are caused by failure of internal control or effective execution.Therefore,under the current situation,it is necessary to discuss the relationship between the three aspects of ownership structure,internal control and company performance.This paper selects 5796 A-listed manufacturing companies from 2012 to 2016 as research samples,and studies the relationship among equity structure,effectiveness of internal control and company performance.This paper uses ownership structure as the explanatory variables,internal control as the intermediary variable,corporate performance as the explanatory variables to discuss the relationship between every two pairs separately.Finally,we study the intermediary conduction effect of the internal control in the influence of ownership structure on corporate performance.In this paper,we take the concentration of stock rights,equity balance and management shareholding ratio as the alternative variables of equity structure,and Dibo·China internal control index of listed companies to measure the effectiveness of internal control.Through factor analysis obtaining the Integrated Performance Factor Y to measures firm performance to study the conduction path of the three and the conclusions are as below:(1)Equity concentration and company performance is significantly and positively correlated,corporate performance increases with the increase of ownership concentration.The degree of ownership balance has a significant positive correlation with company performance.Improving the company's equity balance system to a certain extent will lift the company's operating performance.Management shareholding ratio is significantly and positively correlated with company performance.Increasing the proportion of management shareholding can improve corporate performance.(2)There is a significant positive correlation between the ownership concentration and the effectiveness of internal control.The effectiveness of internal control is enhanced with the increase of ownership concentration.Equity balance and the effectiveness of internal control are significantly and positively correlated with each other.The improvement of equity balance helps to improve the effectiveness of internal control.The proportion of shares held by the management is significantly and positively correlated with the effectiveness of the internal control.Increasing the shareholding of the management is conducive to improve the effectiveness of the internal control.(3)Internal control has significant part of intermediary conduction effect in the influence of ownership concentration,equity balance and management shareholding ratio on company performance.Finally,this article summarizes the conclusions of the study,and puts forward suggestions on optimizing the ownership structure of the company and perfecting the internal control system of the company,and points out the shortcomings and expectations in the research.