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Internal Control and External Constraints

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  • Ge Changyin

Abstract

The ‘ecosystem’ of Chinese enterprises is greatly affected by the external environment. This article proposes a behaviour-based internal control framework, defined as ‘3 + 1’, which includes controls at the decision-making, management and operational, as well as behavioural levels. Considering the characteristic Chinese social institution, economic development pattern, policies and regulation, as well as individual values and other external factors, the purpose of this article is to provide new insight and methods to solve fundamental internal control issues by constructing an appropriate institution that can balance internal and external factors to solve both the short- and long-term problems of the control of Chinese enterprises.

Suggested Citation

  • Ge Changyin, 2014. "Internal Control and External Constraints," China Report, , vol. 50(1), pages 69-78, February.
    • Handle: RePEc:sae:chnrpt:v:50:y:2014:i:1:p:69-78
    DOI: 10.1177/0009445513516400
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