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Article Title : Research on the Influence of Internal Control Quality on Enterprise Profitability
Author(s) : Jiayi Zhang
Corresponding Author : Jiayi Zhang
Keywords : Internal quality control; Enterprise profitability; Industry competition level; The effectiveness of internal control; Factors influencing enterprise value

This paper selects manufacturing enterprises from 2007 to 2018 as the initial research sample, and studies the influence of internal control quality on enterprise profitability through empirical analysis. And according to the industry competition and enterprise profitability as the basis of sample division, the group regression model is constructed to explore the factors that influence the internal control on enterprise value. The results of the study found that the improvement of internal control quality has a significant positive effect on the enhancement of corporate profitability, and this effect is particularly obvious in low-competitive industries and profitable companies. At the same time, good internal factors can also improve corporate profitability, such as higher operating income, more sufficient cash flow, higher return on assets, etc., all provide a guarantee for the improvement of corporate value. The research conclusion provides important policy enlightenment for how to improve the internal control quality to enhance the profitability of enterprises.