Research On The Impact Of Corporate Governance Structure On The Effectiveness Of Internal Control

Since the 21 st century,there have been frequent financial fraud incidents at home and abroad.When examining the scandals,the failure of internal control is a common problem.This has sounded the alarm for all countries in the world.We must attach importance to internal control of enterprises.The failure of internal control is closely related to the unreasonable corporate governance structure.In order for the healthy and sustainable development of the company,it is of great significance to study the impact of corporate governance structure on the effectiveness of internal control.The article sorts out the relevant literature on the impact of corporate governance structure on the effectiveness of internal control.It provides the theoretical basis for this thesis,exploring potential innovations based on previous research.In terms of innovation,the degree of realization of internal control objectives is adopted here to measure the effectiveness of internal control.Meanwhile,internal control objectives are divided into two levels: general objectives and sub-objectives.The degree of achievement of general objectives can fully reflect the effectiveness of internal control and is measured by the Dibo Index.The sub-objectives are measured by the efficiency and effects of operating,reliability of financial reports and compliance with laws and regulations.In the empirical research part of this paper,the general objective and three sub-objectives are regarded as explanatory variables,explanatory variables on the levels of equity structure,board of directors,board of supervisors and management and three control variables are introduced to establish a linear regression model.Under this circumstance,an empirical analysis is conducted and the conclusions are as follows:(1)Increasing the proportion of shareholders 'attendance generally enhances the effectiveness of the company's internal control.the proportion of shareholders attending the meeting has a positive impact on the Dibo index,the efficiency of operations,the reliability of financial reports and compliance with laws and regulations.(2)Strengthening the checks and balances of shares,and strengthening the restriction on the power of the largest shareholder are conducive to improving the effectiveness of internal control of the company.The greater the ratio of equity checks and balances,the lower the Dibo Index score of the enterprise and the lower the compliance with laws and regulations,but the equity check and balance conditions have no obvious impact on the reliability of the company's financial reports and the efficiency of operations.(3)Increasing the proportion of independent directors is conducive to enhancing the effectiveness of internal control of the enterprise.the higher the proportion of independent directors,the higher the enterprise's Dibo index score,the better the compliance with laws and regulations,the stronger the reliability of corporate financial reports,but the independent The proportion of directors does not have a significant impact on the efficiency of operations.(4)Expanding the size of the board of supervisors can generally improve the effectiveness of internal control of the company.he larger the size of the board of supervisors,the higher the score of the company's Dibo index,and the greater the efficiency of the company's operation.Good,the stronger the reliability of the financial report,the better the compliance with laws and regulations.(5)Increasing executive compensation is conducive to improving the effectiveness of internal control of the company.the higher the executive compensation,the more the company's Dibo Index score The higher the efficiency of the company's operation,the better,but the compliance of executive compensation with laws and regulations and the reliability of financial reports are not significant influences.(6)Chairman and general manager are not conducive to improving the effectiveness of internal control.the chairman and the general manager are not conducive to the improvement of the enterprise's Dibo index score,and are negative to the reliability of the company's financial reports and compliance with laws and regulations Affect the relationship,but the chairman and general manager have no obvious effect on the efficiency of the company's operation.