Research On The Influence Of Corporate Governance Structure On The Effectiveness Of Internal Control

As one of the important means of business management,internal control is of great significance in preventing and controlling various risks faced by enterprises.The lack and imperfection of internal control system will increase the possibility of corporate financial fraud and violation of regulations,leading to the operation of enterprises.The risk is increasing.In the current increasingly competitive economic environment,corporate accounting fraud,bankruptcy and other phenomena emerge one after another,which reflects the weak internal control system of some enterprises,so it is extremely urgent to improve the internal control system of enterprises.In recent years,GEM listed companies have developed rapidly and have gradually become an important pillar of the national economy.The GEM market is mainly dominated by small and medium-sized enterprises.Therefore,the selection of GEM listed companies as a research object has a certain representativeness.Numerous studies have shown that corporate governance is the basic guarantee for the effective operation of internal control of enterprises,and sound internal control promotes the improvement of corporate governance structure,and the two complement each other.Based on the theory of corporate governance and internal control,this paper empirically studies the impact of the governance structure of listed companies on the GEM on the effectiveness of internal control,and proposes suggestions for improving the governance structure of listed companies on GEM and improving the effectiveness of internal control systems.Based on the combing of related literatures,this paper expounds the concepts related to corporate governance structure and internal control,and selects the data of GEM listed companies in 2015-2017,first using principal component analysis to find representative The index is used to calculate the comprehensive score of the effectiveness of internal control;then the corporate governance structure is used as the independent variable to construct its function of internal control effectiveness,and the governance structure of the listed companies on the GEM is determined by multiple linear regression and descriptive analysis.The relationship between the effectiveness of internal control has been empirically studied.The conclusions of the study are as follows:(1)In terms of ownership structure,equity concentration is negatively correlated with internal control effectiveness;equity balance is positively correlated with internal control effectiveness;(2)in terms of board characteristics,board size,chairman and general manager share the same position,it has a negative correlation with the effectiveness of internal control;the proportion of independent directors is positively related to the effectiveness of internal control;(3)in terms of the characteristics of the board of supervisors,the size of the board of supervisors is positively related to the effectiveness of internal control;(4)in terms of management,executive compensation and The effectiveness of internal control is positively correlated;there is no significant correlation between executive education and internal control effectiveness.According to the above conclusions,combined with the actual situation of China's GEM listed companies,this paper starts from the improvement of internal control effectiveness,proposes corresponding policy recommendations from four levels of corporate governance structure,including optimizing the shareholding structure;improving the supervisory board system;establishing a reasonable Board mechanism;improve management incentives.