Internal Control,Property Right And Enterprise Performance

With the rapid development of market economy and widespread domestic and international concern over the issue of internal control construction,the five ministries and commissions such as the Ministry of Finance have promulgated the "Basic Norms for Internal Control of Enterprises" and the "Guidelines for Supporting Internal Control of Enterprises",marking the development of internal control in our country to a new stage.The development of internal control system will inevitably bring about a series of economic consequences.Therefore,in this paper we will use empirical data to study the relationship between internal control quality and business performance.In this paper,5624 observations of Chinese A-share listed companies from 2012 to 2016 are used as the sample data to test the relationship between the quality of internal control and firm performance.The performance indicators are divided into financial performance indicators and market performance indicators.The selection of financial performance indicators is the comprehensive financial indicators excluding the "noise" of earnings management,which makes the research results more realistic and reliable.Market performance indicators is Tobin’s Q value.And then adding the variable of property right to conduct further research to analyze the difference of the impact of internal control quality on the financial performance and market performance of enterprises in state-owned enterprises and private-owned enterprises.This article is divided into six chapters.The first chapter is the introduction;the second chapter is this paper’s literature review,which reviews and combs the literature about the quality of internal control,the selection of enterprise performance indicators,and the relationship between the quality of internal control and the performance of enterprises;the third chapter is theoretical analysis,defining the concepts of the quality of internal control and enterprise performance evaluation,systematically analyzing the internal control theory,principal-agent theory,signal transmission theory and stakeholder theory.The fourth chapter is the research design,put forward the hypothesis through the internal control theory,signal transmission theory and principal-agent theory,introduce the data selection and variable definition,and construct the regression model.The fifth chapter is the empirical analysis,which is divided into descriptive statistical analysis,correlation coefficient analysis and regression analysis.Finally,the sixth chapter is the conclusion of this paper,which generalizes the conclusion of the full text,draws the research enlightenment,and points out the limitations of the research and future research prospects.The main conclusions of this are as follow:1.Theoretical analysis shows that good internal control can prevent the management risks,financial risks and business risks,and reduce the principal-agent problem through internal control and raise the level of corporate governance so as to improve the financial performance of the enterprise.Meanwhile,compared with private enterprises,state-owned enterprises have a high level of earnings management,low quality of internal control and weak promotion of corporate performance.2.The data test results show that:(1)The quality of internal control has a significant positive impact on the financial performance of enterprises.(2)The positive effect of internal control quality on the market performance of enterprises is insignificant.(3)Compared with state-owned enterprises,the positive effect of internal control quality on the financial performance of private-owned enterprises is more significant.(4)The positive influences of internal control quality of state-owned enterprises and private-owned enterprises on the market performance are both insignificant.