The Empirical Study Of The Affecting Factors On Disclosure Of The Internal Control Information—based On The Company Governance

With a series of financial event happening, investors began to distrust the internal controlinformation disclosed by the listed companies, which seriously affected the development ofcapital markets and the information demand of investors. In2002, the United States Congressenacted the Sarbanes-Oxley Act, in which requires the listed companies forced disclose thecompany’s internal control information. Since then, China has also promulgated a number oflaws and regulations, but the listed companies’ general disclosure situation is not ideal. Whatfactors affect disclosure of the internal control information? How to improve the internalcontrol information’s disclosure degree? These problems are all caused by the concern of theinvestors, researchers and regulators. Those disclosure systems of internal control informationare sound or not concern whether the realization of the interests between the investors, creditors,government and management of the Company will be successful. This paper make GEM listedcompanies in2010as a research sample. there are some problems such as a high price-earningsratio, executives frequently leave and reduce their company stock and other issues. Thencombined with the internal control, Audit Committee, shareholding structure and auditinstitutions and other factors, causes and countermeasures, in the context of companies listedon GEM, we analyze the factors, which affect the disclosure of internal control information,from three aspects of the audit committee, the controlling shareholder equity percentage andaudit agency authority and improve the internal control information’s disclosure degree.In this paper, based on the domestic and international research literatures, we firstanalyzed the concepts and theories between corporate governance and internal controlinformation disclosure, and the correlation between them, and then stressed the importance ofthe disclosure of internal control information, laying a theoretical foundation for the later study.Secondly, by making use of the annual report data of listed companies on GEM2010, selectwhether to establish an audit committee and the stake of the controlling shareholder as internalgovernance structure variables, select the trial institutions authoritative as an externalgovernance mechanism variable, select the disclosure of internal control information as theexplanatory variables from corporate governance angle that internal management structure andexternal governance mechanism, select whether to establish an audit committee, the controllingshareholder stake and authority of audit institutions as explanatory variables, propose ahypothesis, found a multiple linear regression model, use Eviews3, and make the empiricalresearch by using heteroscedasticity analysis, multicollinearity analysis, descriptive statisticalanalysis, correlation analysis, regression analysis and analysis of covariance. The results of thestudy show that: whether or not to establish an audit committee and audit institutions’ authorityis positively related of the internal control information disclosure; the controlling shareholdersholding ratio and internal control information disclosure are negative correlation.we recommends that: strengthening the construction of the audit institutions’ system andfunctions to ensure that the Audit Committee better fulfill its responsibilities; cultivating a largenumber of institutional investors, reducing the stake of largest shareholder and increasing thepublic shares to attract diverse investors to invest in, and constantly optimize the shareholdingstructure; strengthening the construction of practice standards and professional ethics of Certified Public Accountants to improve the Certified Public Accountant audit independence,reinforce the Certified Public Accountant audit of the internal control information disclosure,and improve the quality of internal control disclosure information, etc.