Research for the Internal Control Effect of Listed Companies Basing on Logistic Regression: Take the Listed State-owned Holding Companies in China as Samples

The article chooses 1525 listed state-owned holding companies issued the internal control reports by the auditors during 2004 similar to 2006 as samples, and studies on the impacts of the companies' internal control elements on the internal control effects of companies by the Logistic regression mode. The empirical results show that: the promotion of the proportion of corporate shares, the proportion of the independent directors occupied the board members, the proportion of the external members in Board of Supervisors and the extent of the incentive incompatibility will enhance the effectiveness of internal control, and unlimitedly expanding the size of the board of directors, the excessive increase of ownership concentration will weaken the internal controls. This shows that the rationality of governance structure to a certain extent affect and constrain the implementation of the internal control. Therefore, a reasonable corporate governance structure is an effective way to improve the effectiveness of internal control.