Research On The Internal Control Information Disclosures And The Financial Report Quality In China's Listed Companies

In recent years, the information disclosure of internal control causes an extensive concern in domestic and foreign accounting field. After many years of voluntary information disclosure of internal control, the United States have already demanded the listed companies to disclose such information compulsory. Our country has requested the listed security companies, commercial banks and insurance companies to provide internal control information, as to other listed companies. But it's still a short time for our country's internal control information disclosure; research on it is still in an initial stage. Therefore, this article starts from the analysis of the relationship between the financial report quality and the internal control information disclosure, further research on the significance of internal control information disclosure in our country.This article is divided into five chapters totally. Chapter 1 introduced the research background first, then provided an overview of current research on internal control information disclosure, finally listed out the research thinking and methods, and also pointed out some shortages of this article.Chapter 2 gave the theoretical analysis of the relationship between the internal information disclosure and the financial report quality. First, defined the meaning of these two, analyzed the six influential factors of the finance report quality in details, and concretely elaborated the three standards of finance report quality. Second, analyzed the relationship between these two from the five elements of the internal control report, thinking the control environment is the premise, the control activities is the foundation, and the information and communication is the essential element. Third, elaborated by various theories such as the agency theory, the information asymmetry theory and the signal theory. Last, analyzed from the view points of the financial report quality, the investor, the company and the audit report, to elaborate the significance of internal control information disclosure, thinking it can improve the financial report quality, help to decision making, strengthen the management, and make the audit report credible.Chapter 3 is an empirical research on the internal control information disclosure and financial report quality in our country's listed companies. It took 2005 annual reports of 5 commercial banks, 4 non-banking financial institutions, and other 528 companies listed at Shenzhen stock exchanges as the research objects. First, by descriptive analysis, found out that the listed commercial banks and non-banking financial institutions disclose the internal control information in details while other 528 listed companies not. Second, by the Logistic regression analysis, found out the financial report quality and internal control information disclosure have significant correlation with the audit opinion and financial risk, but no significant correlation with the operate risk, audit committee and floating stocks.Chapter 4 is to analyze current situation of the internal control information disclosure in our country's listed companies, and also analyze its reasons from the two aspects of the supply and demand of internal control information.The last chapter is to put forward suggestion to improve the internal control information disclosure in our country's listed companies.