Study On Financial Factors Of The Disclosure Quality Of Internal Control

With the promulgation and implementation of "basic standards of internal control","application of internal control guidelines","internal control evaluation guidelines" and"Internal Control Audit Guidelines,",China’s system of standards of informationdisclosure of internal control has been established. According to the requirements ofinformation disclosure of internal control system, since January1,2011, cross-listingcompanies that is defined in this article will be the first execution，and will graduallyexpand to other executive body in the following year.Cross-listing companies, are our internal control group with higher quality ofinformation disclosure, and the first execution of the new system of standards,this paperstudies on factors of the disclosure quality on china stock change of internal control ofcross-listing companies, to find regular and relationships between them, and makerecommendations accordingly on the basis of the study.When selecting factors of affecting quality of cross-listing companies of Internalcontrol disclosure, This paper selects those factors fully reflect the company’s financialposition, operating results, cash flow, and then study as a complete system.This paper contains five parts based on this research ideas:The first part first presents the study problem,and then explain the purpose andsignificance of this study, defines the concept of cross-listed companies, review status ofdomestic and international research, introduces the general research ideas andarrangement of content, and finally presents this research method to be adopted.The second part first introduces the theory of internal control disclosure:asymmetric information, signaling theory, principal-agent theory and the theory ofpublic goods, to lay the foundation of the following research in theory. Secondly,introduces China’s system of internal control disclosure norms, first a brief introductionof development process of China’s system of internal control information disclosurestandards and then a interpretation of the characters of the new internal control systemof standards, and drawn some inspiration through comparison of internal control practices in both China and the United States.The third part first introduces the the sample,analyzes the financial impact offactors and presents the five research hypotheses, and determines the dependent variableand the independent variables of this article. The independent variables are presentedaccording to hypotheses，while the dependent variable is the quality of informationdisclosure of internal control of cross-listed companies through the method of contentscore,based on the new internal control system of standards.The forth part analysys the current situation of the quality of informationdisclosure of cross-listing company in China,and performs correlation analysis andregression analysis of financial factors and the disclosure quality of internal control ofcross-listing companies in China’s stock exchange, and then explains empirical results.In addition to all of the above, we also give some suggestions about specificimplementation and improvement of the disclosure quality of internal control ofcross-listing companies as well as all listed companies in China’s stock exchangeaccording to the preceding analysis,and conclud with the innovations, and lacks offollow-up research and the directions in further research.