The research of GEM listed companies´ internal control effectiveness based on grey incidence analysis

The establishment of GEM can effectively solve financing channels of small and medium-sized enterprises, and further perfect capital market structure in our country. The strength of the internal control ability, however, has a direct impact on the healthy development of the GEM listed companies. Based on the principal-agent theory, corporate governance theory, system theory, applying the grey incidence analysis method to study the GEM listed companies internal control effectiveness. It has a realistic significance on the further enrichment of GEM listed companies´ internal control effectiveness theory, the improvement of internal control ability, and the promotion of the healthy development of the GEM listed companies.