Proceedings of the 2015 Asia-Pacific Energy Equipment Engineering Research Conference

Study on the Influence of Power Balance on the Effectiveness of Internal Control in the Listed Company of Energy Industry in China

Authors
Yunchen Wang, Yumei Chen, Xuan Yu
Corresponding Author
Yunchen Wang
Available Online June 2015.
DOI
10.2991/ap3er-15.2015.119How to use a DOI?
Keywords
energy enterprise; effectiveness of internal control; equity structure; duality separation
Abstract

The collapse of China Aviation Oil (Singapore), which has aroused huge attention and consideration on the effective implement of internal control in energy enterprises, warn us that the internal system, lacking the balance of power, will inevitably be an empty talk. This study, based on a series of reality settings such as Operation Guidance for the Internal Control of Petroleum and Petrochemical Industry, has taken the listed companies in energy industry as research samples, and analyzed the influence of power balance on the effectiveness of internal control. The study has found that: (1) Generally, the effectiveness of internal control in energy industry lies above the average level; (2) The power balance, no matter the proxy variable is CEO duality or the proportion of the first big shareholder and the second big shareholder, is negatively correlated with internal control. The research results show that the unbalanced internal power, including both the unbalanced authorities and equity imbalance, in energy industry will weaken the effectiveness of internal control. Hence, to enhance the effectiveness energy enterprises’ internal control asks for further optimizing the balance of stock and strengthening the constraint of senior executives’ power.

Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2015 Asia-Pacific Energy Equipment Engineering Research Conference
Series
Advances in Engineering Research
Publication Date
June 2015
ISBN
978-94-62520-63-9
ISSN
2352-5401
DOI
10.2991/ap3er-15.2015.119How to use a DOI?
Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Yunchen Wang
AU  - Yumei Chen
AU  - Xuan Yu
PY  - 2015/06
DA  - 2015/06
TI  - Study on the Influence of Power Balance on the Effectiveness of Internal Control in the Listed Company of Energy Industry in China
BT  - Proceedings of the 2015 Asia-Pacific Energy Equipment Engineering Research Conference
PB  - Atlantis Press
SP  - 500
EP  - 503
SN  - 2352-5401
UR  - https://doi.org/10.2991/ap3er-15.2015.119
DO  - 10.2991/ap3er-15.2015.119
ID  - Wang2015/06
ER  -