Research On The Effect Of Internal Control Effectiveness On Enterprise Performance

Internal control construction has gradually become the focus of enterprise management.In recent years,enterprises are facing more and more risk management problems in the fierce market competition environment,including market macro-risk and internal risk.Therefore,in order to prevent and solve the risk problems in operation,enterprises begin to gradually carry out the management of internal control of enterprises.The management of the effectiveness of internal control directly affects the operation and development of enterprises.At present,in order to maximize temporary benefits,many enterprises ignore the sustainable development of enterprises,leading to the failure of internal control management,which leads to a series of enterprise development and social problems.The criteria for measuring the effectiveness of internal control are mainly based on the degree of accomplishment of the objectives.Currently,COSO's Internal Control-Integration Framework constructs three kinds of objectives,and defines the concept and importance of the activities of the objectives of internal control in the Basic Standards of Internal Control.The paper based on the five types of objective activities of the basic norms of internal control,and on the premise of legitimate compliance,asset safety and reporting control of enterprises,this paper aims at the strategic activities of enterprises to ensure the smooth implementation of enterprise operation activities,and analyses the impact of various objective activities of internal control on enterprise performance,so as to promote the steady development of enterprises in market operation risks.Based on the analysis of the current situation of manufacturing industry,this paper puts forward the research proposition.By choosing the data of Listed Companies in Shanghai and Shenzhen manufacturing industries from 2015 to 2017 as the research object,721 observation samples were selected.Based on the Balanced Scorecard theory,relevant dimension indicators were established.Principal Component Analysis(PCA)was used to construct enterprise comprehensive performance indicators,and the constructed comprehensive performance indicators were used as dependent variables to study the correlation of internal control.The evaluation of internal control quality of enterprises is mainly based on the five target hierarchical index of internal control of Dibo.By constructing the data model of internal control target activities and enterprise comprehensive performance,the correlation between internal control and enterprise performance is analyzed by descriptive statistics,correlation analysis and multiple regression analysis with SPSS software,and the enterprise performance is analyzed concretely by internal control target activities.Through the research,it is found that effective internal control has a good role in promoting enterprise performance,among which strategic objectives and operational objectives have the most obvious impact on enterprise performance.Finally,according to the results of empirical analysis,we draw relevant conclusions,and propose that the establishment of internal control should take into account the integrity of the target activities.Strengthening the management of internal control is conducive to improving the overall performance of enterprises.