Study on the moderating effect of top management team characteristics on the relationship between equity incentive and internal control quality

This paper selects the data of listed companies in Shanghai stock exchange and Shenzhen stock exchange between 2010 and 2013, studying the moderating effect of management team characteristics on the relationship between equity incentive and internal control quality. The result shows that there is a significant positive correlation between equity incentive and internal control quality. Also, education level of executive team plays a significant positive regulatory role in the relationship between equity incentive and internal control quality, while the number of executive team plays a significant negative regulatory role. Besides, age diverse and sex ratio of executive team do not have a significant regulatory role. It shows the executive incentive level, their values, risk awareness and management philosophy have an important impact on internal control quality. This paper can enrich the theory system and improve the effectiveness of the internal control.