Study on the Influence of Power Balance on the Effectiveness of Internal Control in the Listed Company of Energy Industry in China
- 10.2991/ap3er-15.2015.119How to use a DOI?
- energy enterprise; effectiveness of internal control; equity structure; duality separation
The collapse of China Aviation Oil (Singapore), which has aroused huge attention and consideration on the effective implement of internal control in energy enterprises, warn us that the internal system, lacking the balance of power, will inevitably be an empty talk. This study, based on a series of reality settings such as Operation Guidance for the Internal Control of Petroleum and Petrochemical Industry, has taken the listed companies in energy industry as research samples, and analyzed the influence of power balance on the effectiveness of internal control. The study has found that: (1) Generally, the effectiveness of internal control in energy industry lies above the average level; (2) The power balance, no matter the proxy variable is CEO duality or the proportion of the first big shareholder and the second big shareholder, is negatively correlated with internal control. The research results show that the unbalanced internal power, including both the unbalanced authorities and equity imbalance, in energy industry will weaken the effectiveness of internal control. Hence, to enhance the effectiveness energy enterprises’ internal control asks for further optimizing the balance of stock and strengthening the constraint of senior executives’ power.
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Yunchen Wang AU - Yumei Chen AU - Xuan Yu PY - 2015/06 DA - 2015/06 TI - Study on the Influence of Power Balance on the Effectiveness of Internal Control in the Listed Company of Energy Industry in China BT - Proceedings of the 2015 Asia-Pacific Energy Equipment Engineering Research Conference PB - Atlantis Press SP - 500 EP - 503 SN - 2352-5401 UR - https://doi.org/10.2991/ap3er-15.2015.119 DO - 10.2991/ap3er-15.2015.119 ID - Wang2015/06 ER -