Information Disclosure, Internal Control Of Listed Companies In China

Strengthening the quality of information disclosure is one of the basic means of supervising the listed companies used by various countries. The American Justice Brande once said the sunshine is the best Antiseptic; the light is the most effective police.The series of cheating scandals in the USA securities market exposure the deficient in the listed companies'internal control. So the act of SOX was passed by the Congress of USA which point out seriously that the listed companies should disclose their internal control information in 404 clauses. The aim of the act is to set up the effective system to regulate the listed companies and recover the confidence of the investors.Recently there had been emerged several cheating scandals in our securities market. One of important reasons is the missing of the internal control, which is the key factor to the companies'performance and the reliability of financial information. Especially the issuance of SOX act, our government should use it for reference to establish the system to consummate the internal control and its information disclosure of listed companies in our securities market. Then China Securities regulatory commission issues a series of statutes to guide the disclosure of the internal control information.But the realistic situation of the disclosure is not satisfied. Because on the one hand, the regulations themselves exist several problems; for the other hand, there is not motivation for listed companies to disclosure. So the current internal control information does a little help to the investors'decisions. This paper puts forward that we should construct the management reporting on internal control which is helpful to regulate the listed companies, promote the internal control management and then...