Author(s)

Weiping Huang, Panpan Long

Management School, Jinan University, Guangzhou, China.

At present, the main ways of protecting the interests of creditors include adjusting the new debt scale, reducing the interest rate and adjusting the debt capital cost. In this paper, from a new perspective of the principal-agent, this article tries to explore whether the internal control can protect the interests of the creditors. Through the study, we found that the higher the quality of internal control of listed companies, the less the occupied money by assets substitution of controlling shareholders.

Internal Control, Asset Substitution, Capital Occupied, Creditor Protection

Huang, W. and Long, P. (2015) Internal Control, Asset Substitution and Creditor Protection. Modern Economy, 6, 484-489. doi: 10.4236/me.2015.64047.