Research On The Influencing Factors Of Internal Control Effectiveness Based On System Dynamics

Since 2012,the listed companies on the Main Board have started to implement the "Basic Rules for Enterprise Internal Control" and the "Guidelines for Enterprise Internal Control" in batches,marking the full entry of listed companies in our country into the standard construction stage of the internal control system.Although the disclosure of internal control information has been voluntarily transitioning to a phase of mandatory phase,the cases of financial fraud that led to the failure of internal control such as Beidahuang and Xintai Electric that broke out in recent years have enabled regulators and the general public to clearly recognize the effectiveness of internal control over the corporate and capital markets The importance of In this context,it is of great theoretical and practical significance to identify the key factors that affect the effectiveness of internal control in order to propose improvement measures.This paper attempts to find out the key factors that affect the effectiveness of internal control by establishing a systematic dynamic model of the factors influencing the effectiveness of internal control,by using Ganyue Expressway as an example.The full text is divided into six parts.The first part summarizes the research background and significance,the relevant literature and research methods of the influencing factors on the effectiveness of internal control,and leads to the unique perspective of this article.The second part is valid for internal control and internal control Then it analyzes the theoretical basis of internal control problems from principal-agent theory and signal transmission theory,and introduces the research methods of system dynamics and its application in the study of the influencing factors of the effectiveness of internal control Adaptive analysis;The third part introduces the background of the case and uses the DIB internal control index to evaluate the overall effectiveness of the internal control of listed companies in China.Through the methods of sub-industry,sub-regional and sub-exchange,the present situation of the effectiveness of internal control of listed companies in China was compared and analyzed.Secondly,the case company Ganyue Expressway Co.,Ltd.was introduced to introduce the case company's business operations,development,construction and implementation of internal control,and explain the reasons for the selection of the case company.In the fourth part,based on the previous literature and system theory,using the system dynamics method,we established a system with the influence factors of internal control effectiveness based on the board governance subsystem,corporateculture construction subsystem and external supervision subsystem.In the fifth part,the actual data of the case company in the past five years was put into the model,and the model parameters were continuously adjusted.Finally,the effectiveness of the model was tested.Finally,seven variables including the proportion of directors' equity,corporate culture construction,and media supervision are taken as input variables,and the effectiveness of internal control is the output variable.Simulation simulation shows the degree of influence of each variable on the effectiveness of internal control.In the sixth part,on the basis of the results of simulation and analysis,the specific countermeasures and suggestions for improving the effectiveness of the internal control of the case company are put forward,and the full text is summarized and forecasted.The main conclusions of this paper are as follows: Firstly,the effectiveness of internal control of listed companies in China still needs to be improved.Specifically,the increase in the number of medium-sized companies with effective internal control was shifted from those with higher internal control levels and lower ones with the phenomenon of "moving both ends";the number of companies disclosing internal control evaluation reports increased year by year,and the internal control audit report The conclusions of the effectiveness of more than 99%,but the awareness of disclosure still needs to be improved;there are big differences in the effectiveness of internal control of listed companies in different industries,regions and exchanges.Secondly,through the model operation,we found that the factors affecting the internal control effectiveness of Ganyue Expressway are as follows:the proportion of directors holding shares has no significant effect on the effectiveness of internal control;the proportion of independent directors has little effect on the effectiveness of internal control in the short term,but has a long-term promotion effect;the size of board of supervisors,frequency of board meetings,construction of enterprise culture plays a positive and positive role in the effectiveness of internal control,and the long-term effect of construction of enterprise culture is greater.When the media supervision is intensified,it is conducive to enhancing the effectiveness of internal control.It is noteworthy that the promotion of media supervision is only effective to a certain extent;the higher the degree of legal perfection,the better the effectiveness of internal control.