Research On The Management Reporting On Internal Control Of Chinese Listed Companies

Recently there had been emerged several cheating scandals in capital market at home and abroad. One of important reasons is the missing or deficiency of the internal control in listed companies. Internal control diselosure is drawing more and more attention home and abroad . Atfer several years of internal control's voluntary diselosure, USA has issued rules to require Public companies to implement mandatory diselosure. In the year of 2006,《Shanghai Stock Exchange Internal Control guidelines》,《Shenzhen Stock Exchange Internal Control guidelines》and《Basic norms of enterprise's internal control》issued in 2008 also require listed companies to assess the companies'internal controls and disclosure the Management reporting on internal control together with the annual report. This indicates internal control information turn from voluntary disclosure stage to mandatory disclosure stage.For our part,after all,the Management reporting on internal control disclosure starts late,theory and practical are all in the junior stage. Listed Companies are not familiar with the execution of the rules of the Management reporting on internal control diselosure,some companies even have wrong understanding on the internal control .this dissertation studies the existing regulations on the disclosure of information of the Management reporting on internal control status and analyses the reasons for this situation,as well as making relevant recommendations according to the existing these deficiencies.Firstly,this dissertation theoertically analyzes the theoretical foundation and significance of the the internal conrtol disclosure. Based on the anualr reports of 23 listed commecial banks,stoekjobbers,78 special treated companies and 800 other listed companies from Shanghai Stock Exchange and ShenZhen Stoek Exchange, this article analyzes the disclosing situation on the Management reporting on internal control of 2007,2008 by descriptive analysis, and puts forward existing problems, such as ineffective execution of reuglations, insufficient motivation of voluntary disclosure, insufficient content in the Management reporting on internal control and lack of correct recognization about internal contorl, etc.and then analyses the causes of these problems,such as the deficiencies of legal norms,insufficient requirements of the information of the internal conrtol and so on.Finally,the paper points out the fllowing suggestions,such as make great efforts to cultivate institutional investors, improve the governance structrue of listed companies, and actively improve the relevant legal norms and so on.