| The report of the Nineteenth National Congress of the Communist Party of China clearly pointed out that the door of China's opening to the outside world will open wider and wider.At present,the policy of opening up to the outside world based on the layout principle of omnibearing,multi-level,and wide-area is being actively promoted by China.As an inseparable part of the Chinese market economy system,the capital market can improve the level of social resource allocation and enhance the efficiency of economic operations.Therefore,its healthy development has become one of the focuses of the China's economic policy.In the process of China's comprehensive opening to the outside world,the relevant departments have taken the time to introduce the measures for opening to the outside of China's capital market in stages,and explored the depth and breadth of opening up step by step,and gradually improved the policy to look forward to solve the issues in terms of investor structure and philosophy,regulatory effectiveness,and market efficiency of the capital market in mainland China by degrees.Among them,the Shanghai-Hong Kong Stock Connect trading system is the first policy for the two-way opening of the mainland capital market and the outside world,which is of milestone significance.However,due to the late start of the capital market in mainland China,there are some inherent deficiencies.The lack of a rational market environment will not only reduce market effectiveness,but also affect issues such as internal governance of listed companies.If the Shanghai-Hong Kong Stock Connect trading system is regarded as an external governance mechanism,can it promote the policy target listed companies to improve the level of internal control governance and optimize the Mainland market together with domestic and foreign investors and market supporting mechanisms?Still unable to improve effectively?Studying its impact on the quality of corporate internal control can provide empirical evidence for the impact of the Shanghai-Hong Kong Stock Connect trading system on corporate governance,thereby helping the healthy and stable development of the capital market.By combing the literature on the opening of the capital market,the Shanghai-Hong Kong Stock Connect trading system,and the quality of corporate internal control,sorting out the history of the capital market opening up and the background of the Shanghai-Hong Kong Stock Connect trading system,the paper analyzes the principal-agent theory,supervision and governance effects,and market supervision theory,and put forward the research hypothesis of the Shanghai-Hong Kong Stock Connect trading system and the quality of internal control.At the same time,the overseas background of senior executives is introduced as a moderating variable.Data from 2012-2018 of all A-shares listed companies are selected as research samples.A variety of methods are used to test the hypotheses,first use descriptive statistics and correlation analysis to summarize the data,and then use regression analysis and other methods for in-depth analysis.The research results show that the Shanghai-Hong Kong Stock Connect trading system can improve the quality of internal control of enterprises,and the overseas background of executives has a significant negative regulatory effect on this relationship.Further analyzing the transmission path of the Shanghai-Hong Kong Stock Connect trading system to the quality of internal control of the enterprise,it is found that the policy can at least affect the quality of internal control of enterprises by two ways,including making up for the lack of tracking by external analysts and the lack of supervision of internal shareholding institutions.The innovation points of the thesis are as follows.Firstly,the Shanghai-Hong Kong Stock Connect trading system is an important policy for deepening the opening of the capital market in mainland China.The existing literatures are more mature in that policy directly affect the linkage and stability of the capital market,but there is less research at the corporate level where policy indirectly affect.Therefore,the paper can enrich the research on the economic consequences of the Shanghai-Hong Kong Stock Connect trading system.Secondly,the thesis regards the Shanghai-Hong Kong Stock Connect trading system as an external environmental change item and brings it into the scope of influencing factors of internal control quality for consideration,which increases the research perspective of the quality of internal control of enterprises.Thirdly,the paper takes the overseas background of senior executives as the adjusting variable of the Shanghai-Hong Kong Stock Connect trading system and the quality of internal control of enterprises,and widens the research scene of the background of senior executives' team. |
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