Study on the relationship between capacity regulation, internal control and economic benefits in China's iron and steel industry

Abstract

In recent years, the iron and steel industry has achieved satisfactory results in de-capacity. How this effect affects the economic benefits of listed companies in iron and steel industry is the goal of this paper. This paper collects the data of de-capacity index in iron and steel industry from 2013 to 2018, collecting the data of internal control and improving quality and efficiency of 32 listed companies in iron and steel industry from 2014 to 2018, and using regression analysis method to determine the impact of de-capacity and internal control on the economic benefits of listed companies in iron and steel industry. Empirical research shows that the 5-year task of de-capacity in the iron and steel industry has been completed in 3 years, which has promoted the ratio of return on common stockholder's equity of the iron and steel industry's superior companies to rise continuously; the bigger the internal control index of the listed companies in the iron and steel industry, the better the economic benefits of the company; under the background of de-capacity, the listed companies in the iron and steel industry have increased the sales revenue of products and accelerated the process of capital turnover and improving profitability will promote the economic efficiency of the company. The listed companies in the iron and steel industry should be guided by the world steel market demand, based on the high-quality transformation and development, enhance the scientific and technological attractiveness and innovation of iron and steel products, and lead the continuous, healthy, and high-quality development of the iron and steel industry.