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Corporate Governance, Internal Control and Logistics Enterprise Performance: Based on the Empirical Study
of Listed Logistics Enterprises in China

ones; internal control is generally established under the guidelines of corporate governance
and government regulations. So, we develop Hypothesis 4: compared with corporate
governance, the lag effect of internal control is more significant.
Fifthly, in consideration of the ownership attribute of the samples, we make

heterogeneity studies on state-owned and private logistics enterprises. Because of the
large-sized organizational structure and frequent administrative contacts with local
governments, state-owned enterprises meet more challenges on the implementation of

corporate governance and internal control than private enterprise. The “insider control”
phenomenon is more complex and universal in state-owned enterprises than in private
enterprise. So, we proposed Hypothesis 5: the corporate governance quality and the
internal control effectiveness have more significant impact on the performance of private
enterprise than on the state-owned enterprise.

To test these hypotheses, this paper applies descriptive statistical analysis, correlation
coefficient analysis and regression analysis to document the quality of current corporate
governance and the effectiveness of internal control on these samples.

We use Return on Assets (ROA) and Return on Equity (ROE) to measure the
performance of logistics enterprises; conduct Principal Component Analysis (PCA) to
measure the corporate governance quality based on ten indicators from the aspects of
ownership structure, board structure and function, and compensation incentives; bring in
Dibo Internal Control Index to measure the internal control effectiveness. Setting corporate

governance quality and internal control effectiveness as the explanatory variables for
empirical analysis, we select indicators such as Enterprise Size, Asset-liability Ratio,
Equity Nature, Income Growth Capacity, and the Year of Establishment as the control

variables. Finally, we collect data from CSMAR (China Stock Market & Accounting
Research) and Dibo Internal Control and Risk Management Database.

3. Findings

The results show that logistics enterprises’ corporate governance quality and internal
control effectiveness are positively correlated with their financial performance. Moreover,
the interaction between corporate governance and internal control positively impacts the

performance of logistics enterprises, which is consistent with the hypothesis regarding the

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