An Study On The Effectiveness Of Internal Control On Enterprise Value

Enterprise value is representative of an important indicator of overall strength,its goal is to maximize the value of the pursuit of business.Effective internal control will help improve their own value and enhance the overall competitiveness of enterprises,which is not only relevant laws regulations,but also the needs of enterprise management.At present,China's automobile manufacturing industry is in an important period of rapid development.The ever-expanding scale of enterprises has put forward higher requirements on the effectiveness of internal control.The construction of its internal control mechanism will become the focus of the entire industry in the future.The thesis first explains the research background and significance in the theoretical part,as well as related concepts,combined with domestic and foreign experts and scholars in the study of internal control effectiveness and corporate value,as well as related theoretical basis,summarize the effectiveness of internal control and corporate value relations.Then explaining the impact of the overall effectiveness of internal control and effectiveness of internal control of the five goals on corporate value,and making research hypotheses.In the empirical part,firstly select the appropriate financial indicators,to build a comprehensive evaluation system can quantify the effectiveness of internal control.Secondly factor analysis is used to deal with management objectives,asset safety objectives and strategic objectives,and get their respective comprehensive score index.Finally,using Pearson correlation coefficient test,regression analysis and robustness test to test the effect of internal control effectiveness on enterprise value.The results of the analysis show that the effectiveness of internal control of the enterprise,management objectives,asset safety objectives and strategic objectives have a positive impact on the enterprise value.Report objectives and compliance objectives will not have a significant impact on the enterprise value.In the control variables,firm size has a negative impact on firm value;equity concentration has a positive impact on firm value.For the empirical results and problems,propose feasible suggestions to optimize our internal controls on the automobile manufacturing enterprises,and improve corporate value.