This study looked at how internal control affects the value of companies listed on the Chinese stock market. The researchers studied data from Chinese companies between 2007 and 2015. They focused on how good internal controls can help reduce problems in companies and increase their value. By improving internal control quality, companies can lower agency costs and boost their worth. However, the government and big shareholders have a big role in implementing internal controls, affecting their effectiveness. State-owned companies face more issues, leading to weaker internal controls and less impact on company value compared to non-state-owned companies. In simpler terms, companies with strong internal controls can manage problems better and become more valuable, but this can be harder for state-owned companies due to unique challenges they face.