Research On The Impact Of Check-and-Balance Ownership Structure On The Effectiveness Of Internal Control

The rapid development of China's economy has made the transactions of listed companies increasingly complicated,and the importance of internal control has become increasingly prominent in the management of enterprises.Internal control can not only ensure the sustainable development of an enterprise,but also evaluate the management level of an enterprise.The effective operation of internal control can quickly find defects in company management,prevent mistakes,enable the company's business management to be smooth and orderly,avoid the occurrence of fraud,and prevent risks,and external monitoring entities can also supervise and restrict the internal control information disclosed by the enterprise,and promote the effective improvement of the internal management system of the enterprise,so that the management can be more detailed,so as to improve the operating performance and achieve the purpose of maximizing the value of the enterprise.For the internal control system to operate effectively,it must rely on sound corporate governance mechanisms.At the same time,the effective implementation of the internal control system can improve the company's operating efficiency and effectiveness,the authenticity of its information disclosure can also be strengthened,and the rights and interests of corporate stakeholders can be protected.As an important part of modern corporate governance,equity check and balance will directly affect the company's equity structure and the arrangement of control rights,thereby affecting the construction of the internal control system and its effective implementation.This article intends to explore the influencing factor of equity check and balance,study its mechanism of effectiveness of internal control,and hope to put forward relevant suggestions for the construction and improvement of internal control of listed companies in China.In this paper,the listed dairy companies in China are taken as an example to explore the impact of equity checks and balances on the effectiveness of internal control,mainly in the way of theoretical analysis and case analysis.First of all,it expounds the theory of equity restrictiron and the effectiveness of internal control,and studies the mechanism of equity restriction on the effectiveness of internal control.Secondly,the internal control effectiveness evaluation system guided by internal control objectives is selected to judge the operation of the company's internal control,which is measured by the degree of realization of internal control objectives.Then,Guangming dairy,Sanyuan stock and Tianrun dairy are selected as the case study objects,and other factors(such as the nature of controlling shareholders,industry characteristics,listing time,financial situation,corporate culture,etc.)are controlled.Only equity restrictiron,which affects the effectiveness of internal control,is selected for research.Through comparison of the above three dairy companies in 2014-2018,the effectiveness of the company's internal control objectives is evaluated,and the relevant conclusions are drawn: the equity is relatively in the middle and there is a substantial equity check and balance mechanism of shareholders,which has a positive impact on the company in terms of legal compliance objectives,asset safety objectives and strategic objectives;the high concentration of the equity structure will improve the company's business objectives;when the company's equity distribution is relatively central and there are substantial check-and-balance shareholders,especially state-owned check-and-balance shareholders,its internal control works best.Finally,on this basis,this paper puts forward suggestions such as appropriately reducing the shareholding ratio of large state-owned shareholders,and special legislation to encourage enterprises to form a substantial effective equity check and balance mechanism to improve the effectiveness of internal control of state-owned listed companies in China.