An Empirical Study On The Factors Affecting The Effectiveness Of Internal Control Of Listed Corporation -Based On The Perspective Of Corporate Governance

Followed a series of financial scandals such as the "Anran" and the "worldcom",the international society has given height attention to the effectiveness of internal control. The effectiveness of internal contro1(EIC) refers to the internal control system providing the level of protection for its objectives, which is under the influence of many factors. Based on Shanghai normal 2011-2013 annual financial reports of listed companies and other financial information, the article provides an empirical study on the factors affecting the EIC from internal and external corporate governance aspects. The study shows that: executive compensation is positively related to the EIC of listed companies; the number of meetings of the Directory and Supervisory Board is positively related to the Reliability goal,while being negatively related to the Legitimacy goal; the creditor constraint mechanism is positively related to the ROE (Rate of Return on Common Stockholders' Equity) goal,being negatively related to the Reliability goal,while the size of the asset is the opposite; the market competitive mechanism is positively related to the ROE goal,while the factors of Proportion of independent (IND)directors is negatively related to the ROE goal; Ownership concentration,Supervise and Corporate Social Responsibility Report have no significant correlation with the EIC.