Internal Control, Financial Governance and Corporate Strategic Objectives Achievement

Yu Lu, Han Zhan and Shiyu Xiao

Accounting and Finance Research, 2019, vol. 8, issue 3, 157

Abstract: From the perspective of financial governance, this paper analyzes the impact of internal control on the achievement degree of corporate strategic objectives and the influence path, taking the A-share listed companies from 2014 to 2016 in Shanghai and Shenzhen Stock Exchanges as samples. The empirical analysis results show that there is a significant positive correlation between internal control and the achievement degree of corporate strategic objectives, and that financial governance mediates the correlation between internal control and the achievement degree of corporate strategic objectives. Further research shows that among various types of corporate strategies, cost leadership strategy and market share strategy are significantly and positively affected by internal control. However, technology leadership strategy is not affected by internal control. The paper also found that there is no significant correlation between internal control and strategy differentiation. These conclusions have a certain significance for listed companies to improve internal control, conduct financial governance and achieve their strategic objectives.Â

Date: 2019
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