Research On The Effect Of Internal Control Of Companies On Total Factor Productivity

Under the new normal economic environment,with the continuous change of economic growth mode and economic structure,China’s economic growth mode is transforming to efficiency growth.In recent years,the scale of China’s listed companies has gradually expanded,but total factor productivity has been relatively backward.Total factor productivity has become an important indicator to measure the effective growth of enterprise efficiency,and improving total factor productivity is imperative.Due to the asymmetry of market information and the existence of agency problems,the efficiency of enterprise resource allocation is low and the development of technology is uneven.As an important means for internal control and regulation of enterprises,internal control can improve the effectiveness of resource allocation through internal supervision and promote technological innovation and technological progress of enterprises,that is,through the "efficiency channel" and "technical channel" for total factor productivity Promote.This paper uses the annual data of Shanghai and Shenzhen A-share listed companies from 2006 to 2017,and uses data envelopment analysis to calculate the total factor productivity data of listed companies.Factor productivity improvement mechanism,and then analyze and measure the level effect and growth effect from a static to dynamic perspective,that is,internal control has a promoting effect on total factor productivity and the growth rate of total factor productivity.In order to further analyze the impact of enterprises under different heterogeneous conditions,this paper proposes a further hypothesis to study the manifestation of regulatory variables with clearly distinguishing characteristics under the internal control driving effect.The results of the empirical analysis prove that good internal control has a significant improvement effect on the enterprise’s total factor productivity.And after empirical research,it was found that the nature of different companies,changes in the concentration of equity within the company,and the degree of financing constraints all have varying degrees of impact on its driving effect.The level effect of internal control on total factor productivity in non-state-owned enterprises is more significant;the relatively high concentration of equity can strengthen the level effect and growth effect of internal control on total factor productivity;The level effect of factor productivity is stronger.It shows that under different enterprise heterogeneity characteristics,the degree of influence of internal control on total factor productivity is also different.Based on the above conclusions,enterprises can improve total factor productivity by strengthening the corresponding internal control,and improve internal control according to the heterogeneity of the enterprise.In this paper,when studying the effect of internal control on total factor productivity,the situation under different conditions of different enterprises is considered,and the analysis is carried out one by one.The research conclusions can help enterprises to formulate a reasonable system suitable for the enterprise according to local conditions and implement reasonable and effective internal management In order to accelerate the improvement of production efficiency.