The impact of internal controls on quality corporate development

Abstract

Internal control is a crucial corporate internal governance tool that aids in improving total factor productivity and the high-quality growth of businesses. This article examines the connection between internal control and superior corporate growth using a research sample of A-share listed businesses from 2003 to 2020. The effectiveness of internal control has been demonstrated to support high-quality corporate development. The quality development of enterprises has some regional heterogeneity and the quality of internal control of enterprises in the western region plays a stronger role in promoting the quality development of those enterprises, according to further research. Additionally, there is some geographical variability in the quality of company development, and the western region's quality of internal control of businesses has a bigger influence on this development. The most immediate policy implication of this article is how to strengthen internal control effectiveness in order to support high-quality firm development and contribute to Chinese modernization.