Relationship-based Trading,Corporate Strategy And Internal Control Quality

In the domestic research on the impact of differences in strategic choices on the internal governance structure of the company,there is no direct empirical evidence of the role of corporate strategy in internal control.According to more mature foreign research,the organizational and internal governance level of a company needs to be internal.The control operation status is matched,the pace of the two is consistent,interaction and mutual influence,and the development strategy is of great significance to the internal governance of the company.China's regulatory authorities have not issued relevant policies requiring enterprises to publish relevant information on corporate strategies.The management of the company did not take into account the operating characteristics and organizational structure of its own enterprises when formulating its development strategy.At present,the lack of domestic corporate strategic choices affects the quality of internal control.evidence of.If the choice of company strategy will affect the efficiency of its internal control operation,can we develop a development strategy that matches the quality of internal control? As a trading mechanism closely related to business operations outside the company,relational trading also plays an important role in influencing the company's business decision-making,surplus level and financing.It forms with the operation of the company's internal control system.A framework of internal and external linkages,so this paper studies the company's development strategy and the relationship between transactional transactions affecting the quality of internal control,specifically explore whether different strategic choices will have an impact on the quality of internal control? Can changes in the proportion of relational transactions affect the level of internal control operations? Further,if different development strategies,such as offensive strategies,will have a negative impact on the quality of internal control of the company,will the increase in the proportion of relational transactions strengthen the negative impact of offensive strategies on the quality of internal control?Based on the above considerations,this paper takes the 2008-2017 China Shenhu Main Board listed company as the research object,and investigates the relationship between the relationship transaction and strategic choice and the interaction between the two on the quality of internal control.Studies have shown that compared to companies adopting defensive strategies,the internal control quality of companies using offensive strategies is low,and internal control operations are also affected.Furthermore,after considering the factors of relational transactions,it is found that the greater the proportion of relational transactions,the more likely the internal control operation fails,and the quality level is reduced.Different companies that distinguish the proportion of different relational transactions,the impact of the company's development strategy on its internal control is different.The enterprises that rely heavily on major suppliers/customers have a negative impact on the development strategy and internal control quality,which will aggravate the attack.The adverse impact of the type of enterprise on the quality of internal control and the defensive enterprise's positive effect on the internal control operation.The conclusion is still valid after controlling the endogeneity problem.The conclusions show that on the one hand,it shows that different development strategies of enterprises have different influence on the quality of internal control,management may have preference for strategic choices,and on the other hand,the change of proportion of relational transactions will have an impact on internal control operations,and will Alternating with the company's development strategy has a combined effect on the quality of internal control.