A Study on the Effectiveness of Management Incentive and Internal Control - Based on the Data Analysis of Shanghai and Shenzhen Stock

Enterprise management as the implementation of internal control and corporate governance structure in the core role, is the enterprise can implement the key to effective internal control. This paper examines whether the incentive system of the management is conducive to the improvement of the effectiveness of internal control by the equity incentive and salary incentive data of the listed companies in 2012-2014. The results show that the positive effect of salary incentive has a significant effect on the effectiveness of internal control. The effect of equity incentive and internal control is positive but not significant. On the basis of this conclusion, this paper puts forward some suggestions on the construction of internal control and management incentive system of listed companies in China, and adds the theoretical basis for the establishment of scientific incentive system for listed companies in China.