Study On The Effectiveness Of Family Enterprise's Internal Control

As a result of the transition from a planned economy to a market economy,family-owned enterprises linked by blood ties have sprung up in the capital market,and they are good at seizing opportunities,raising funds quickly and executing effectively.These unique advantages allow it to quickly gain a foothold in the market.However,with the further development of the capital market,although the family business has its own unique advantages,but a large number of exposed defects still make the family business precarious,and play an indispensable role in the prosperity and growth of the Chinese market.In order to analyze the effectiveness of the internal control of family companies,the author selected two family companies in the pharmaceutical industry under the premise of theoretical research on management and economics,and consulted and combed the relevant research literature.The internal control evaluation system guided by internal control targets is used to measure the effectiveness of the internal control between Hengrui Pharmaceutical and Ruikang Pharmaceutical.From the two aspects of internal and external factors and the characteristics of the family enterprise combined with the goal of internal control of the enterprise,we find out the differences between the two in terms of ideas and concepts,and compare the advantages and disadvantages.In this way,the author puts forward the policy suggestions and countermeasures to optimize the internal control system and ensure the effectiveness of internal control.In order to find out the loopholes in the internal control of family enterprises,solve their long-standing problems,ensure the healthy growth of the foundation industry,this article summarizes the relevant literature in the second chapter and combs the views of domestic and foreign researchers.Its content is divided into three parts: internal control theory,effectiveness of internal control and evaluation methods.The third chapter is the theoretical analysis of the effectiveness of the internal control of the family enterprise.Firstly,based on management and economics,the theoretical basis of internal control is summarized.Secondly,the concepts of family enterprise,internal control,and internal control effectiveness are defined in this paper in conjunction with related scholars and documents.And elaborated the internal control's goal,the element,and the classification and the characteristic of the family enterprise's internal control make the foundation for the following analysis.At the same time from the media supervision,laws and regulations,equity structure and characteristics of the board of directors and other internal and external aspects of the impact of internal control effectiveness factors,and finally,the target direction of the internal control evaluation system for the method of five parts of the specific content of measurement indicators.The fourth chapter is a comparative analysis of Hengrui Medicine and Ruikang Medicine.Initially,this chapter briefly introduces the reasons for the selection of cases,uses the evaluation system selected in the previous chapter to evaluate the internal control of the two companies,and combines the two companies 'business operations,equity structure,and the characteristics of the board of directors.Explain the two companies.From five internal control targets to compare and analyze the advantages and disadvantages of the two family enterprises,it is found that the internal control score of Hengrui Pharmaceutical is generally higher than that of Ruikang Pharmaceutical during the period of study.After an in-depth analysis,it is found that the two have good or bad performance in the implementation of each goal.Chapter 5 combines the case analysis with the internal and external influence factors to draw the conclusion of this article: external information attention,family-style management,internal corporate governance level and internal information communication as a family enterprise's unique problem whether it is in the improvement of the system or in the effectiveness of internal control for its whether or not The key factors of healthy growth and prosperity,through the third part of this article on the goal of internal control and internal and external factors and other theories,combined with the comparative analysis of actual cases,this article believesthat in order to improve the effectiveness of the internal control of family enterprises,to solve the shortcomings in various aspects,Can start from four aspects: improve the internal control laws and regulations,increase the cost of enterprise violations;Strengthen the function of the board of directors and implement the system of separation of powers;Promote enterprise reform and implement human resources policies;Moderate family management,optimize internal information communication.