Research On The Impact Of Internal Control Quality On Enterprise Annexation Earnings

Merger of enterprises play an extremely important role in the strategic restructuring of enterprises,the promotion of asset flows,the expansion of production scale,the improvement of economic benefits,and the enhancement of enterprise competitiveness.They can promote the rapid growth and development of enterprises.In the past 20th century,there have been many large-scale mergers and acquisitions around the world.Many companies in emerging economies and even developing countries have increasingly responded to increasingly fierce market competition through mergers.Since the 21st century,many Chinese enterprises have expanded or promoted their growth by means of mergers and acquisitions.From 2010 to 2015,the transaction volume of Chinese enterprises’ mergers and acquisitions has increased from 5281 to 9420,and the transaction volume has increased from 252 billion US dollars to 7337 billion US dollars.The transaction volume and transaction volume have increased significantly.But,due to the poor quality of internal control of the enterprises before the merger,the corporate governance efficiency is low,the lack of risk analysis,the blind selection of target companies,and even the lack of integration in the later stages of the merger,and even bankruptcy are everywhere.With the increase of enterprise mergers and the deepening of enterprise internal control research,the theoretical and practical circles have begun to pay attention to the importance of internal control to mergers,and believe that the internal control quality is an internal factor that affects the merger proceeds of enterprises.By improving corporate governance,improving the quality of business decisions and market competitiveness,the merger profits of enterprises can be improved.In view of this,this paper focuses on the impact of internal control quality on corporate merger income.Based on the construction of internal control quality evaluation index,corporate merger income evaluation index,a nd revealing the mechanism of internal control quality on corporate merger income,the corresponding conclusions are drawn.And put forward corresponding suggestion.Taking the merger process of B listed company as an example,the effect of internal control quality on the merger process is investigated.The content of this paper mainly starts from the following four aspects:First,the establishment of internal control quality evaluation indicators;The second is to construct the evaluation index of corporate merger income;The third is to find out the mechanism of enterprise internal control quality on corporate merger revenue;Fourth,through the analysis of specific cases,further verify the actual impact of internal control quality on the merger of enterprises.The analysis leads to the following main conclusions:(1)The quality of internal control is conducive to the enterprise’s benefit in the merger process,that is,the higher the quality of internal control of the enterprise,the greater the enterprise’s benefit in the merger process.(2)The quality of internal control has a greater impact on the profitability and growth ability before the merger of enterprises,and the merger of enterprises has a greater impact on the profitability,solvency,growth ability and capital operating ability of enterprises.(3)As far as the catering industry is concerned,the corporate strategic index,business index,legal index,reporting index,and asset Anquanzhishu,which measure the internal control quality of the company,are all acting on the merger proceeds of the company.The impact of corporate business index on corporate merger earnings is the greatest.