Study On The Influence Of Tnternal Control Effectiveness On Debt Default Risk For Manufacturing Listed Companies

With the expansion of debt scale,the biggest threat faced by enterprises is the risk of debt default.Debt default affects the financing,normal operation and sustainable development of enterprises.On the basis of comprehensively considering internal and external factors of default risk,enterprises should institute effective prevention and control measures to prevent the occurrence of debt default events.As the immune system of a company,internal control plays a more and more important role in improving the ability of risk control and strengthening corporate governance,which is an important internal factor affecting the risk of debt default.Based on this,this paper takes A-share manufacturing listed companies on the motherboard as research samples to study the impact of internal control effectiveness on default risk from a five-objective perspective,which has important practical significance for protecting creditors’ interests and promoting the healthy development of manufacturing listed companies.Firstly,on the basis of introducing the research background and summarizing the relevant research literature of internal control and debt default risk at home and abroad,this paper explain the significance of the study.At the same time,this paper lays a theoretical foundation for the following empirical research by explaining the validity of internal control,the related definition of debt default risk and elaborating the principal-agent theory,information asymmetry and incomplete contract theory.Secondly,after analyzing the current situation of internal control and debt default in manufacturing industry,this paper takes the data of A-share manufacturing listed companies on the motherboard during 2015-2017 as the samples for empirical research.This paper evaluates the effectiveness of internal control of listed manufacturing companies from the perspective of internal control objectives by using the entropy method,and uses KMV model to measure the risk of debt defaul.On this basis,the regression model between the effectiveness of internal control and the risk of debt default of listed manufacturing companies is constructed,and the empirical analysis is carried out using SPSS software.The results show that improving the effectiveness of internal control is conducive to reducing the risk of debt default,especially the better the realization of corporate strategic objectives,business objectives,financial reporting objectives and asset security objectives,the lower the risk of debt default.Finally,based on the conclusions of this study,this paper puts forwardcountermeasures and suggestions to prevent the debt default risk of listed manufacturing companies from the perspective of improving the effectiveness of internal control.