The Research On Effect Of Internal Control Disclosure

With the increasing important attached to Internal Control Disclosures rose by Sarbanes-Oxley Act, there are more attention to Disclosure system,in turn, in China. For example, Internal Control Guidelines for Listed Company issued by Stock Exchange in 2006 and Basic Norms of Inter Control issued by Ministry of Finance, which both require listed company disclosing their assessments based on internal control system, and the audit reports on assessments as well. According to requirements, this dissertation studies the statues and the effects of disclosures.Firstly, hypotheses are put forward based on the information economy theory and the institution environment.Secondly, it classifies the statue by whether companies disclose both their assessments and audit reports, only the assessments, or neither. Data demonstrate:more and more listed companies intent to disclose both assessments and audit reports, or just assessments, and the companies which disclose assessments, intent to offer the more other information according to disclosure requirement, and have good financial states.Thirdly, after applying "the event study" and abnormal return analysis, we find:there are actually impacts after annual report disclosure, but they are not the reaction to internal control disclosure. Good disclosure received remarkable positive reacts, as well as no disclosure statue, but the multi-variable regression analysis does not support the conclusion. Further more, there is no remarkable distinguish among the three groups.And last, the dissertation gives its suggestions according to the analysis result.