International Journal of Research Studies in Management
CollabWritive Special Issue
2023 Volume 11 Issue 7
Available Online: 25 August 2023
Author/s:
Wang, Yisu
Graduate School, Lyceum of the Philippines University – Batangas, Philippines
Abstract:
With the increasingly mature development of modern enterprise systems, the importance of enterprises as the main members of the market for economic and social development is beyond doubt. Internal control is an important part of modern enterprise internal management. It reduces risks for the operation of enterprises, effectively reducing operating costs and expenses, and is a guarantee strategy for long-term development and comprehensive management of enterprises. For the growth and development of enterprises, they should combine their own actual situation, comprehensively analyze the existing situation of the enterprise, strengthen internal management of the enterprise, and continuously improve the internal control management of the enterprise. Doing a good job in internal control management can promote the effective development of various business activities, minimize various risks faced by enterprises, and improve their comprehensive competitiveness and market value. The purpose of this study is to determine the impact of internal control quality of companies on enterprise value and determine the impact of internal control quality on enterprise growth. Specifically, determine the enterprise value in terms of company product positioning, market product and monitoring; assess the internal control quality in terms of control environment, risk assessment, control activities, information and communication, production and marketing capacity; evaluate the enterprise growth in terms of acquisition of legitimacy, opportunity ability, resource capacity; test the causality and important relationship between internal control quality and enterprise value; test the significant relationship between internal control quality and enterprise growth. Finally, this study summarized a framework for enterprise development based on enterprise value, internal control, and enterprise growth. This study revealed that, from the analysis of internal control quality and enterprise value, improving the quality of internal control in enterprises has a positive promoting effect on the growth of enterprise value; From the analysis of the quality of internal control and the growth of enterprises, it can be seen that enterprises focus on internal control and strengthen internal control activities and processes in five aspects, which can promote the achievement of strategic goals and promote enterprise growth. By exerting the maximum value and role of internal control, it is meaningful for enterprises to achieve long-term, sustainable, and high-quality development.
Keywords: enterprise value, internal control quality, enterprise development
DOI: https://doi.org/10.5861/ijrsm.2023.1091
Cite this article:
Wang, Y. (2023). Enterprise value, growth, and internal control quality: A framework for enterprise development. International Journal of Research Studies in Management, 11(7), 149-162. https://doi.org/10.5861/ijrsm.2023.1091