A Study On The Relationship Between Executive Power,Heterogeneity And Internal Control Quality

Internal control is the cornerstone of the enterprise,which is related to the success or failure of the enterprise.Senior management is the core of power and pilot enter prises,the allocation of power and heterogeneity of background characteristics will affect the implementation effect of internal control of enterprise executives.The exi sting literature studies the impact of executive power and executive heterogeneity on the quality of internal control respectively,but it does not study its common influe nce.The innovation of this paper is that it builds the relationship between the three based on the management level power theory,the top echelon theory and the team conflict theory,and it helps us to better understand internal control from the manag ement perspective.Based on the empirical analysis of 12183 research samples of 2688 A-share listed co mpanies in 2011 to 2015,we get the following three conclusions: first,executive po wer is negatively related to the quality of internal control,that is,the higher the exe cutive power is,the lower the quality of internal control is.That executive power di d not play the "power protection" in the internal control,and it confirms the "power beyond",which also reflects China's internal and external supervision mechanism is n ot perfect and a lack of efficiency in the capital market and the principal-agent probl em in the enterprise has not been resolved yet.Second,the age and educational hete rogeneity of the executive team are positively related to the quality of the internal co ntrol of the enterprise.It shows that the task-based conflict brought by the heterogen eity of TMT plays a leading role in Chinese listed companies,which has a positive impact on the quality of internal control.The gender heterogeneity of senior executiv e team is positively related to the quality of internal control,but it is not significant,which may be because of the samples of the femal executives are too small.Third,executive power has a negative regulating effect on the relationship between senior m anagement team age,educational background heterogeneity and internal control quality.It shows that with the increase of executive power,executives will have a negative i mpact on the internal control of enterprises based on self-interest motivation.Therefor e,it will inhibit the task conflict level brought by the heterogeneity of senior manag ers' age and educational background,improve the level of relationship conflict,to acertain extent,hinder the development of heterogenous advantages,and ultimately dam age the quality of internal control of enterprises.