Study On Internal Control Information Disclosure Of The Listed Companies In China

In recent years, with the financial frauds taken Place frequently,internal control is increasingly becoming the focus of regulatoryauthorities and the public. A series of related policies and regulationswere introduced, and internal control information disclosure status ofpublic companies is changing with that, especially, the internal controlsupporting guidelines which was released in2010made the disclosure ofinternal control information become an important focus of regulatoryauthorities.Under the background in the system, the empirical evidence about thestatus of the internal control disclosure and the relevant changes willhave important policy and practical significance. Firstly, this paperdescribes the overall situation of internal control disclosure, using asample of the companies listed in Shanghai Stock Exchange and ShenzhenStock Exchange during the2009-2010periods, the author discovers that,with the released policy of the internal control supporting guidelines,the disclosure status of year2009is better than year2010, and thedisclosure status of Shenzhen Stock Exchange is better than Shanghai StockExchange. Besides, this paper introduces a new concept--the internalcontrol implementation scheme disclosure. Secondly, the paper proposesresearch hypothesis based on agency theory, and study which factors willinfluence companies’ voluntary disclosure of internal controlverification report, which are listed in Shanghai and Shenzhen StockExchange at year2010. The author discovers that character of firstdormant partner，number of independent directors, finance lever, and ROAhave significant correlation with the disclosure of internal controlverification report, but the ownership concentration doesn’t havesignificant correlation with the disclosure of internal controlverification report. The paper conducts robust tests by replacing measuregauge of corporate performance and increasing control variable.This paper also expounds enlightenment and policy suggestions afterthe conclusion of every part, and puts forward some suggestions, such asputting public companies’ internal control construction and implementation into the daily regulation, promulgating internal controldisclosure rules for responsibility and punishment, promoting internalcontrol construction and information disclosure of small and medium-sizedmarket and growth enterprise market, and regulating behavior of CPA.