Abstract
We select 1931 Shanghai and Shenzhen A-share listed companies and 9655 groups of data during 2012-2016 as the research sample. Then we use DIB China listed company internal control index as the measure of internal control quality. We also establish a comprehensive financial performance index from debt-paying ability, operation capacity, profitability and development ability to evaluate financial performance. Next we empirically study the correlation between internal control quality and financial performance in accordance with the total samples and the industry samples. We find that internal control quality is significantly related to corporate financial performance on the whole. However, the influence is different between different industries and the correlation in technology-intensive industries is greater than that in capital-intensive industries and labor-intensive industries.
Published Version
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