Empirical Study On Influencing Factors On Information Disclosure Of Internal Control In Small And Medium Listed Companies

In recent years, the frequent occurrence of financial fraud cases, not only disturbed the normal order of market economy, but also enable investors to suffer huge economic losses. By reviewing the research on these cases, we find:the incidence of these cases had a great relationship with the failure of its internal control. An effective internal control system was extremely important to the company. The level of internal control information disclosure not only reflected the establishment and improvement of internal control, but also affected decisions of investors and other external users and supervisors'regulations. In this paper, we applied the internal control information from annual reports of SME board of listed companies as the object, and analyzed factors on information disclosure of internal control by empirical methods.In this paper, firstly, we analyzed the implementation of SME board of listed companies from 2007 to 2009 on internal control information disclosure rules, based on relevant research and construction of rules on internal control information disclosure. Secondly, issued from Principal-agent Theory, Signaling Theory, Asymmetric Information, we analyzed factors on information disclosure, proposed hypotheses, and constructed the internal control information disclosure index (ICDI). Finally, though Correlation Analysis, Descriptive statistical analysis, and Linear regression analysis in SPSS 12.0. We tested the factor on information disclosure in SME board of listed companies in 2009.The main conclusions are as follows:(1) The rule of internal control information disclosure on SME board are more standardized, more stringent than the rules on the Mother board, which is consistent with the original intention. We have to enhance penalties for information disclosure irregularities of listed companies yet.(2) The level of internal control information disclosure on SME board is in good condition generally, and has been increasing annually. But phenomenon exists yet, that standards on internal control are not uniform and content and format is not standardized.(3) Managerial stockholding level and Ownership concentration are related to the level internal control of information disclosure significantly, and other factors are not so.