Research On The Impact Of Internal Control On Enterprise Innovation From The Perspective Of Life Cycle

At present,China’s economy has shifted from high-speed growth to high-quality development.We must adhere to innovation to promote the reform and upgrading of industrial structure and inject power into high-quality economic development.As the main body of innovation,enterprise innovation is related to the sustainable development of enterprises and is a new hot spot concerned by all sectors of society.As an important part of modern enterprise governance structure,internal control can help enterprises prevent risks and allocate resources reasonably,and guarantee the smooth progress of enterprise innovation activities.According to the enterprise life cycle theory,enterprises in different life cycles have different characteristics,such as organizational structure,business objectives,development risks,etc.,and face different governance problems and severity.Therefore,enterprise innovation and internal control governance efficiency will also be affected,and the relationship between the two will also change.Then what is the impact of internal control on enterprise innovation from the perspective of life cycle?This paper carries out research according to the thinking of "asking questions--theoretical analysis--empirical test--conclusions and suggestions".Firstly,the research direction of this paper is determined by sorting out the literature on enterprise innovation,internal control and life cycle.Secondly,through the elaboration and analysis of relevant theories,the research hypothesis of this paper is put forward.Then,China’s A-share manufacturing enterprises from 2017 to 2020 are selected as the research samples,A multiple regression model is established and empirical tests are carried out to explore the difference of the impact of internal control on enterprise innovation from the perspective of life cycle,and further introduce the difference of property rights to deeply analyze the role of five elements of internal control on enterprise innovation.Finally,corresponding policy suggestions are put forward according to the research conclusions.The main conclusions of this paper are as follows:(1)internal control is significantly positively correlated with enterprise innovation;(2)There is a significant positive correlation between internal control and enterprise innovation in different life cycles,but the degree of impact is different,the strongest in the declining stage,the second in the growing stage,and the weakest in the mature stage;(3)The influence of internal control on enterprise innovation of non-state-owned enterprises in different life cycles is similar to the regression results of total sample,and the positive effect of internal control on enterprise innovation of state-owned enterprises is significant only in the recession period;(4)In-depth study of different samples of significant positive correlation between internal control and enterprise innovation shows that the promotion effect of the five elements of internal control is not consistent.This paper discusses the influence of internal control on enterprise innovation from the dynamic perspective of life cycle,which provides a new entry point for the study of enterprise innovation,and also provides a reference for enterprises to improve the governance structure,improve the level of enterprise innovation,and achieve high-quality sustainable development.