Internal Control Opinion, Corporate Governance, and Firm Value: Evidence From Chinese Listed Firms

Based on the sample of Chinese listed firms in 2011-2013, we investigate the relation among audit opinion of internal control, corporate governance and firm value. We find that the quality of corporate governance is a main determinant for the audit opinion of internal control. Furthermore, in turn, the audit of internal control could make the quality of corporate governance improve. Finally, we demonstrate that the effect of audit of internal control on firm value is indirect, which is through the way of the increasing quality of corporate governance.