Research on the Effect Path of Institutional Environment to Internal Control

Abstract

Based on China’s economic transition period and existing research results, this paper analyzes the mechanism and the path of the institutional environment to internal control of enterprises, which concludes three dimensions of political environment, economic conditions and cultural construction. According to the national conditions, it also probes the combined effect of institutional environment and property rights on internal control under different property rights conditions. Through the paper's research, we can further clarify the effect of institutional environment and property rights on internal control mechanism, which also enriches research findings of institutional environment and internal control. It provides certain reference significance for prospective users.