Research On The Impact Of Internal Control Quality On Corporate Profitability In The Chemical API Industry

Nowadays,internal control management has become an important part of modern companies,which is continuously concerned by academia and management practice around the world.China’s chemical API industry is located in the upstream of pharmaceutical production,and plays a crucial role in the development of the pharmaceutical industry.In addition,China’s global API market currently accounts for 20% of its exports.Therefore,the development of China’s chemical API industry has a profound impact on China and even the whole world,and the focus of international chemical pharmaceutical has gradually shifted to developing countries.In recent years,China’s API market has maintained a rapid growth trend,but there are many Business management risk,and a sound internal management mechanism is the basic requirement of the sustainable development of related companies.For listed chemical API manufacturing companies,their profitability refers to the basic level that the company continues to obtain profits and profits under the established total amount of resources used,and ensures the existence and development of the company in the market competition.Obviously,the survival of the company is profit,and survival is the premise of profit,and the quality of internal control deeply affects the survival and development.Therefore,in order to explore the impact of internal control quality on profitability,this paper studies it through different equity properties and different internal control quality based on the chemical API industry.The full text consists of six chapters: The first chapter is the introduction,from the background and significance of the research,and expounds the research method.Chapter II Literature Review and Theoretical Basis.Focus on introducing the research results related to internal control quality,profitability and internal control and profitability.Chapter III outlines the chemical API industry and finds that the internal control of the industry needs to be improved and strengthened.Chapter 4 compares the influence of internal control quality on profitability based on the cases of different equity properties.First,it introduces the situation of private enterprise —— Kelun Pharmaceutical and state-owned enterprise —— Xinhua Pharmaceutical,and analyzes the existence of its internal control Problems,and the corresponding rectification measures.Secondly,for the case enterprises in this paper,measure the internal control quality of Didi’s internal control index,compare the profitability of the case enterprise based on Du Pont analysis,and finally analyze the impact of internal control quality on profitability based on financial indicators and factor analysis.Chapter 5,Based on the cases of different internal control quality,study the impact of internal control quality on profitability,select Kelun Pharmaceutical wit high internal control defects and Zhejiang Pharmaceutical with high internal control quality as case enterprises to explore the impact of internal control quality on profitability by using event research method.Chapter 6 is Research conclusions and recommendations.Based on literature research and case study method,through different equity properties and internal control quality,first,corporate profitability and internal control;second,private and state enterprises have the risk of internal control defects;third,Xinhua Pharmaceutical internal control is better and more stable than Kelun;fourth,its profitability is more stable and better than Kelun;fifth,low internal control quality can cause negative economic consequences.Based on the research conclusion of this paper,make suggestions,first,improve the corporate governance structure;second,face up to the internal control construction;third,identify and repair the internal control defects;fourth,establish an efficient internal control repair system.