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Research Article

Research on Effectiveness of Internal Control in China-based on Panel Data from the Listed Manufacturing Companies in China

Zhumei- Li, Hongwei-He and Yanli-Ma
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The purpose of internal control is to ensure the safety and integrity of corporate’ assets, to comply with accounting standards and ultimately to realize the maximization of corporate’ value. To achieve these goals, internal control is effective. In order to judge the effectiveness of internal controls of Listed Manufacturing Companies in China and find out the deficiencies in internal control of the companies, then improvements can be made in these areas. In this article listed manufacturing companies in China are researched as samples and mutation empirical analysis is made. Then by building a model to verify the the effectiveness of evaluation results. The Innovation of this study is to discover that independent director is not independent; the internal audit department has been given a limited mandate which affects the effectiveness of internal control of Listed Manufacturing Companies in China. Therefore, to achieve the objectives of internal control, some measures must be made.

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  How to cite this article:

Zhumei- Li, Hongwei-He and Yanli-Ma , 2013. Research on Effectiveness of Internal Control in China-based on Panel Data from the Listed Manufacturing Companies in China. Journal of Applied Sciences, 13: 3435-3438.

DOI: 10.3923/jas.2013.3435.3438


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