I introduction and theoretical analysis

Modern enterprise value management theory holds that enterprises, as the main body of production and operation, must create value and maximize enterprise value. Owners, operators and other stakeholders are most concerned about how enterprises can maximize value through "value management". Performance maximization, as an intuitive indicator to measure enterprise value, has become the goal pursued by enterprises. A sound and effective internal control system is conducive to clarifying the rights and obligations of the responsible subjects, coordinating the interests of all parties, forming an incentive and restraint mechanism, and ensuring the realization of the business objectives of enterprises. Therefore, internal control plays an extremely important role in achieving a higher level of performance.

Second, the research design

1, assuming

According to previous research and theoretical analysis, the author thinks that internal control has a great influence on enterprise performance, and internal control can promote enterprise performance by improving the efficiency and effect of enterprise operation. Therefore, this paper assumes that internal control is positively related to enterprise performance, and the higher the quality of internal control, the greater the enterprise performance.

2. Variable selection

Explanatory variables: Tobin Q value is usually chosen as an index to measure the market performance of enterprises in research. Tobin q value is standardized, with strong operability and small measurement error. In addition, Tobin Q can be directly collected, with strong objectivity. Tobin Q= (stock market value+net debt value)/total assets at the end of the period.

Explanatory variables: Based on the five internal control factors pointed out by COSO Committee's internal control framework and the basic internal control factors stipulated in Basic Code, combined with the research results, this paper * * * sets the 17 index. Mainly divided into 1) control environment: 1A 1, proportion of independent directors. ②A2, the shareholding ratio of the largest shareholder. ③A3, whether the largest shareholder is state-owned or non-state-owned. ④A4, the shareholding ratio of the second to tenth largest shareholders. ⑤A5, whether the chairman is also the general manager. ⑤ A6. Whether the senior management personnel hold shares in the company. ⑦A7, whether to pay attention to the overall training of employees. 2) Risk assessment: 1A8, whether there are risk warnings and countermeasures in the annual report. ②A9, the implementation degree of the eight withholding policies. 3) Control activities: ①A 10, whether there are internal control arrangements in daily work. ②A 1 1, whether there is a performance evaluation system. 4) Information and communication: ①A 12, participation of independent directors. ②A 13, number of board meetings. ③A 14, whether the company has investor relations information. 5) Supervision: ①A 15, independent opinions of the Board of Supervisors on relevant matters of this year. ②A 16, type of audit report of financial statements. ③A 17, whether the enterprise is condemned by the CSRC or the exchange.

Among the selected evaluation indicators, different weights are given to them according to the influence of different indicators on internal control. Referring to the investigation results of Lin Zhongguo (2008) on the importance of internal control indicators, the selected indicators are divided into three grades, and given index weights of 5, 3 and 2 respectively. The internal control index is calculated as follows: ICI = (A3+A5+A8+A10+A1+A14+A16) * 5+(A1+)

Control variables: In addition to internal control, there are many other factors that affect enterprise performance. In order to control the influence of other characteristics of the company on the company's performance, this paper selects the capital structure (Stru), that is, the total assets at the end of the period, the capital size (Lnasset), that is, the asset-liability ratio and earnings per share (EPS) as the control variables.

Third, empirical test.

When selecting samples, this paper mainly uses 100 listed companies of all A shares in Shanghai and Shenzhen stock markets for analysis. Exclude samples with incomplete ST company and data information. The data sorting and analysis in this paper are completed by Excel and SPSS software.

1, descriptive statistics and correlation analysis

The average TobinQ remains at 4.26, which is significantly higher than 1, indicating that the performance of most listed companies is greater than the cost of capital invested, that is, most listed companies are profitable. For the internal control variable ICI, there is also a big gap between the maximum value and the minimum value, and the standard deviation is 48.30324, which shows that the effects of internal control construction and implementation of different listed companies are uneven.

Tobin Q is used to measure the enterprise performance of listed companies, and ICI stands for the overall evaluation of internal control, both of which are used to measure the internal control level of listed companies. The correlation coefficient between them is 0.358, which indicates that there is a positive correlation between internal control and enterprise performance.

2. Regression analysis: In order to test the hypothesis of this paper, this paper estimates the model.

Through regression analysis, we can know that the correlation coefficient between internal control and enterprise value is 0.0439, which is significant at the level of 15%, that is, the higher the effectiveness of internal control, the higher the performance level of enterprises, and the effectiveness of control activities, supervision, information and communication is also significantly positively correlated with enterprise value.

The correlation coefficient between asset size and TobinQ is -3.6 1, which is significant at the level of 1%, and the two are negatively correlated. This should be highly valued by listed companies, and they should not blindly expand their scale for their own growth. The correlation coefficient between earnings per share and Tobin Q is 8.33, which is significant at the level of 20%. This result is not very reliable. The higher the average earnings per share, the stronger the profitability and the higher the performance. The correlation coefficient between asset structure and TobinQ is 9.4 1, and the confidence interval of this result is within 20%.

Through the above empirical analysis, we can find that the length of time to market, average earnings per share and capital structure have a significant impact on the internal control level of enterprises; The improvement of internal control level is conducive to the improvement of enterprise performance. In view of the short implementation time of internal control, the current effect is not very significant.

The test results can prove that the hypothesis of this paper is correct, that is, internal control is positively related to enterprise performance, and the higher the quality of internal control, the higher the level of enterprise performance.

Four. conclusion and suggestion

With the continuous improvement of internal control theory and system, its function has also changed from the traditional "financial report-oriented" internal control to the "value creation-oriented" internal control framework. The implementation of internal control provides practical guidance and suggestions for the operation and development of enterprises and becomes a booster for enterprise value-added. The effective design and operation of internal control system is very important for enterprises to get better development.

In order to improve the efficiency of internal control, optimize the internal control environment of listed companies and maximize the performance of enterprises, enterprises can formulate strategies to improve their performance; Improve the internal control environment of enterprises; Strengthen the supervision and inspection of internal control, and actively use the frontier achievements of scientific and technological development to strengthen internal control. (Author: School of Accounting, Shanxi University of Finance and Economics)

refer to

[1] Five ministries and commissions, including the Ministry of Finance, the China Securities Regulatory Commission, the National Audit Office, the China Banking Regulatory Commission and the China Insurance Regulatory Commission. Notice of the Ministry of Finance, China Securities Regulatory Commission, National Audit Office, China Banking Regulatory Commission and China Insurance Regulatory Commission on Printing and Distributing Supporting Guidelines for Enterprise Internal Control [Z].20 10-04- 15

[2]Maria Ogneva, K.R. Subramanyam and K.Raghunandan, Internal Control Weaknesses and Cost of Equity: Evidence from Section 404 of SOX [J]. Accounting Review, 2007,82

[3] Li Wanfu, Lin Bin, Yang Deming, Sunyeh. Disclosure of Internal Control Information, Overinvestment of Enterprises and Financial Crisis [J]. China Accounting and Finance Research, 20 10/0,4: 76 ~123.

[4] Accounting Department of the Ministry of Finance. Explanation of enterprise internal control standard (20 10 version) [M]. Beijing: Economic Science Press, 20 10

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