Research On The Impact Of Local Integrity On The Quality Of Internal Control Of Enterprise

Our country has been committed to clean governance,has now achieved phased results.Based on the international anti-corruption organization “Transparency International” released the index shows that our clean governance has significant results.After the 2012 Politburo of the Communist Party of China Conference considered and passed the eight-point Politburo on improving our work style and connecting closely with the masses,our clean government environment has continued to improve.The measures to improve the level of anti-corruption and clean government are not only the escort of national economic development,but also an important part of the economic development environment.Based on the sample of a-share listed companies in Shanghai and Shenzhen from2009 to 2020,this paper discusses the economic consequences of the degree of local integrity from the micro-perspective of internal control of enterprises,and draws the following conclusions:(1)statically,it is found that there is a positive correlation between the level of local honest government and the quality of internal control,the study found that the measures to improve the level of integrity represented by the“Eight regulations of the Central Committee” can improve the quality of internal control,especially in state-owned enterprises with natural political connections.Measures to improve the level of integrity will enhance the level of local integrity,and then will reduce the negative externalities and inefficiency of corruption,high level of local integrity can reduce the rent-seeking space,enhance the deterrent effect to guide enterprises to improve the quality of internal control.Further research shows that the improvement of internal control quality is more significant in the hightransparency listed companies and the low level of local rule of law.The results of the data research are consistent with the theoretical analysis,and also with the macro results that the internal control quality of Chinese enterprises has been improving.The conclusions of the robustness test in this study are also consistent with the results of hypothesis testing.This paper mainly focuses on two aspects,one is to expand the study of internal control quality factors,the other is to enrich the economic consequences of clean governance.There are abundant researches on internal control quality,but the research on the influence of clean government environment on internal control quality is weak.The research on the impact of local clean government environment on macro-economy is abundant,but the research on micro-perspective is few.This paper verifies the influence of the maintenance and change of the level of local integrity on the quality of internal control,and makes marginal contribution to the research on the quality of internal control and the environment of local integrity.