Internal Control Efficiency and Firm Performance - Evidence from China A-share Listed Firms

本研究以2007年至2011年中國深滬兩市A股上市公司為研究樣本，探討內部控制有效性對企業經營績效的影響。本研究從中國上市公司自行揭露之內部控制評價報告、證監會公佈之行政裁罰與滬深兩市對上市公司之處分等三類資訊著手，將內部控制缺失依事件發生原因類型加以分類，並依照《企業內部控制基本規範》及COSO報告架構的五大要素及五大目標將內部控制缺失予以分類。 實證結果發現，有無內控缺失與ROA呈顯著負相關，而缺失是否重大對經營績效並無顯著影響。其次，依發生原因分類內控缺失之研究顯示，以ROA衡量績效，資訊公告、公司制度與環境呈顯著負相關；以ROE衡量時，公司制度與環境呈顯著負相關。以內部控制缺失涉及之要素與目標分類之研究結果顯示，控制作業、資訊與溝通、策略性目標、財務報導及法令遵循與ROA呈顯著負相關；以ROE衡量時，無論涉及要素或目標其結果均不顯著。綜合本研究發現，內部控制有效性與企業經營績效存在一定程度的影響。 Based on a sample of 1,719 A-share listed companies in China over the period of 2007-2011, this research investigates the impact of internal control efficiency on firm performance. The study comprehensively collects internal control reports released by listed firms and penalties which are released by the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). A further classification of internal control weaknesses is performed based on the nature of the events, COSO Internal Control — Integrated Framework and regulations of internal control in China. In summary, the empirical results indicate that, by using the return on assets (ROA) as measurement, firms with internal control weaknesses are significantly underperformed. However, this study doesn’t find that material weaknesses have any impact on firm performance. Moreover, the results show that companies with both defective information announcement and management system and environment have significantly worse performance. Based on the COSO framework, the internal control weaknesses classified by the elements and objectives of internal control, including control activities, information and communication, strategy, financial reporting and compliance, are significantly negative correlated to the firm performance