Research On The Influencing Factors Of The Effectiveness Of Internal Control Of Listed Companies In The Electric Power Industry

As an organic part of corporate governance,internal control plays an important role in preventing information distortion,financial fraud and operational risks,and guaranteeing the legitimate rights and interests of stakeholders.The effectiveness of internal control directly reflects the level of corporate governance capability,and to some extent it reflects the level of business performance.As the lifeblood of national economic development,the electric power industry has the characteristics of high investment,high income,and high exit barriers.It is closely related to people's lives and plays a positive role in promoting national economic development and maintaining social solidarity and stability.Following the technical route of"putting forward questions-theoretical research-empirical research-countermeasures and suggestions",this article focuses on the influencing factors of the effectiveness of internal control,and adopts the research methods of combining theoretical analysis with empirical test,qualitative and quantitative analysis to study and discuss both theoretical and empirical aspects.On the basis of combing and summarizing the relevant domestic and foreign research at home and abroad,this article reviews the relevant theories of internal control,corporate governance and so on,and discusses the evaluation criteria and influencing factors of effectiveness of internal control.Based on the current situation of the effectiveness of internal control and corporate governance of listed companies in electric power industry,this paper selects the data of 53 listed companies in electric power industry in China from 2013 to 2017 as samples,takes corporate governance as the breakthrough point,and decomposes internal governance into four aspects:ownership structure,decision-making level,management level and supervision level.External governance is divided into two dimensions:external audit and legal system.A multiple linear regression model is established to study the influencing factors of the effectiveness of internal control.The results show that:(1)There is a significant positive correlation among the proportion of state-owned shares,the size of board of directors,the proportion of managerial ownership,the legal compliance,the size of enterprises,the number of years of listing and the effectiveness of internal control;(2)Equity concentration,equity balance,concurrent chairman and general manager,the frequency of board of supervisors meeting,the share of executive compensation and the reputation of accounting firm have no significant effect on the improvement of the effectiveness of internal control.According to the empirical results,some suggestions are put forward to optimize the effectiveness of internal control of listed companies in the power industry from the aspects of optimizing the internal governance structure,strengthening the audit evaluation of intermediary institutions and strengthening the government supervision.