Research On The Relationship Between Internal Control Quality And Financial Performance Of State-owned Enterprises Under The Background Of “mixed Reform??

In the past 40 years of reform and opening-up,the improvement of the internal control quality of state-owned enterprises has been a key proposition that restricts the healthy development of SOES.In May 2012,the State-owned Assets Supervision and Administration Commission and the Ministry of Finance issued a circular stressing that the reform and development of central enterprises face an extremely complex external environment,and that the main heads of central enterprises should attach great importance to the work of internal control,ensure that the value of the enterprise is increased.Therefore,the study of the relationship between internal control quality and financial performance of the state-owned enterprises can respond to the state policy and has crtain practical significance for the current reform of state-owned enterprises.After combing the relevant literature,this paper analyzes the relationship between internal control quality and financial performance of state-owned enterprises,and selects the data of all a-share state-owned listed companies from 2009 to 2020,this paper empirically examines the relationship between internal control quality and financial performance in state-owned enterprises under the background of“mixed ownership reform”.The regression results show that the quality of internal control is positively related to financial performance,and the governance of non-state-owned shareholders positively regulates the relationship between the quality of internal control and financial performance.On the basis of the above-mentioned universal law analysis,this paper further analyzes the case company Hangzhou forward,by exploring the changes in the non-state-owned shareholders’ participation in governance after the company’s “Muddling-through”,observe how internal control quality and financial performance change.The result of the case analysis shows that after the mixed ownership reform,the proportion of non-state-owned shareholders and the number of directors appointed by non-state-owned shareholders have achieved a breakthrough of“From scratch to existence”,ownership structure and high-level governance structure become more reasonable,the quality of internal control improved,the enterprise is easier to improve the internal control system to achieve a substantial improvement in financial performance,the results of the case analysis were basically unchanged compared with the regression analysis.Finally,this paper puts forward some pertinent suggestions that state-owned enterprises should promote the construction of internal control,make use of non-state-owned shares to participate in supervision and balance,and promote non-state-owned shareholders to participate in the optimization of high-level governance structure,this paper explains the limitations of this study,and on this basis for the future research prospects.