2017Unpublished venueOpen access

An Empirical Study on the Quality of Internal Control and the Financing Cost of Enterprises

Aolin Liu

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Abstract

The internal control can transfer assets to the outside world security situation of the efficiency of corporate management and other signals, its essence is a guarantee for the normal operation and the control mechanism of enterprises development, it can help enterprises to achieve lower transaction costs.This article uses Internal control index from Shenzhen Dibo Enterprise Risk Management Technology Co. Ltd., internal control and risk management database,through descriptive statistics, Pearson test and multiple regression analysis the influence of internal control quality on the financing cost of enterprise is investigated.The results show that the better the quality of internal control, the lower the cost of corporate finance.

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The internal control can transfer assets to the outside world security situation of the efficiency of corporate management and other signals, its essence is a guarantee for the normal operation and the control mechanism of enterprises development, it can help enterprises to achieve lower transaction costs.This article uses Internal control index from Shenzhen Dibo Enterprise Risk Management Technology Co. Ltd., internal control and risk management database,through descriptive statistics, Pearson test and multiple regression analysis the influence of internal control quality on the financing cost of enterprise is investigated.The results show that the better the quality of internal control, the lower the cost of corporate finance.

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Available abstract

The internal control can transfer assets to the outside world security situation of the efficiency of corporate management and other signals, its essence is a guarantee for the normal operation and the control mechanism of enterprises development, it can help enterprises to achieve lower transaction costs.This article uses Internal control index from Shenzhen Dibo Enterprise Risk Management Technology Co. Ltd., internal control and risk management database,through descriptive statistics, Pearson test and multiple regression analysis the influence of internal control quality on the financing cost of enterprise is investigated.The results show that the better the quality of internal control, the lower the cost of corporate finance.

Key concepts: Quality (philosophy), Control (management), Business, Empirical research, Computer science, Finance, Mathematics, Statistics

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