Research on the Effectiveness of Internal Control: Empirical Evidence from Emerging Markets

Abstract

Effective internal control can reduce the risk of enterprises, and help enterprises to enhance their value. Many scholars at home and abroad have carried out research on the internal control, but there are still many deficiencies in the evaluation of the effectiveness of internal control. This paper is based on the emerging market assets, to Chinese listed companies as the research object, on the basis of the theory of literature, rules and regulations and management practices on the construction of the internal control effectiveness evaluation index system of listed companies, the group G1 weighting method combining with the variation coefficient method, determine the weight of each index, construct the listed company's internal control effectiveness evaluation model. This lays a solid foundation for the follow-up research, and has important theoretical value and practical significance for promoting the effectiveness of internal control.

Keywords: Effectiveness of Internal Control, Comprehensive Evaluation,Grop-G1 Method, Coefficient Variation Method