Title: A Study of Internal Control Possibility Frontier:An Analytical Framework
Abstract: Based on the basic analytical framework of new comparative econo mics proposed by Simeon Djankov and others(2004), this paper introduces the tradeoff thought between disorder and dictatorship in the social system arrangement into the internal control researches; and with transaction costs as the analytical kernel, it explores the issue of internal control possibility frontier(IPF) from the perspective of economics. The essence of internal control is to have a balanced control over disorder and dictatorship, so as to reduce the transaction costs generated from bureaucracy failures. The position and shape of IPF depends on the civilization capital of a society. It is necessary to continuously accumulate social civilization capital as the basic conditions for the internal control construction of China's enterprises. The internal control construction should firstly focus on environmental control,while the guidance of internal control construction should be changed from rule-oriented to principle-oriented.
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: article
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