Research on the Influence of Internal Control Quality on the Growth of SMEs

Abstract

—This study focuses on 2085 companies listed on the small and medium-sized board in 2014-2016. Based on theoretical analysis, the influence of internal control quality on the growth of SMEs is determined by means of empirical research, and whether this influence will change due to the nature of property is further explored. The results show that the internal control quality of SMEs has a positive effect on growth, that is, effective and standardized internal control can enhance the growth of SMEs. Moreover, compared with nationalized businesses, the quality of internal control can influence the growth of non-state-owned enterprises more significantly.