Study on the Internal Control of China’s Listed Companies Based on Corporate Governance
|School||Wuhan University of Science and Technology|
|Keywords||Corporate Governance Internal Control Board of Directors|
Internal control is established in order to achieve objectives established by the company board of directors, management and all employees in the implementation of various control methods, procedures, methods of control mechanisms. Corporate governance is to enable the shareholders, directors, supervisors and management responsibilities between the distribution of profits to a reasonable, and between the various interest groups in a system of checks and balances can be arranged, the two are closely related. Sound corporate governance and effective internal control is to improve company efficiency, protect the interests of stakeholders in an important way.Paper uses theoretical analysis and empirical research combining research methods, studies the impact of internal control factors from the perspective of corporate governance. First paper introduces domestic and foreign academia on corporate governance and internal control related theories research, and then analysis of corporate governance and internal control of the relationship through the relevant theory research. Secondly, from the theoretical paper analysis the various components of corporate governance impact on the internal control mechanism. Then, in 2009 and 2010 China’s listed companies in the manufacturing sector data for the sample, empirical test of corporate governance structure of the impact of internal control. The analysis revealed that the proportion of the three largest shareholders is associated with the efficiency of internal controls; board and Supervisory Board for the construction of the internal control system plays an important role, while the proportion of independent directors and the supervisory board size and internal control showed a lack of correlation, indicating that the independent Directors and supervisors did not effectively play its supervisory role. Based on the above findings, this article feels that we can improve their internal controls from the board of directors, supervisory board and incentive levels.