Study On Internal Control And Its Information Disclosure Of Securities Companies Investment Banking Service

Since the year of 2006, Chinese stock market has been greatly flourishing from 5 years downturn. The increasing of stock index, the growing of stock exchange amount and the starting of IPO, all these are bringing numerous profits and opportunities to securities companies. In this circumstance, many securities companies are looking forward to improving their competitive power through going to public. To them, establishing a complete internal control system and making it be disclosed fully would help them standardize their internal operation management. It also could help them avoid risks and help investors tell good securities companies from bad ones.Investment banking service is the root service of securities companies, and it's also one of the major sources of profits. Whether investment banking is competitive is a sign of securities companies' general capabilities. With the expectation of improving securities companies' competitive power, establishing the internal control of investment banking service is essential to the Chinese securities companies, especially when facing policy risks which caused by macro policy or law, risks caused by global or domestic competition, market risks, underwriting risks, etc.Internal control information disclosure of investment banking service is the only way which public investors could know and understand securities companies' internal control of investment banking service. Nowadays, it's been of great importance for Chinese securities companies with the development of Chinese stock market. In this study, you will see the current status analysis of 46 securities companies' internal control in their annual reports, and have basic idea of its theories, laws and information disclosure. Further more, you will also see the merits and demerits analysis of CITIC Securities Company and Merrill Lynch Co., Ltd. as comparism. Finally, you will find a preferable suggestion of securities companies' investment banking service internal control and its information disclosure in the end of this paper.