Empirical Study On The Quality Of Internal Control Information Disclosure And It’s Influente Influencing Factors

There is a series of vicious accounting information frauds come into light with the2001global economic slowdown, such as Enron and WorldCom, which make theinvestors have no confidence in the listed companies’ authenticity of internal controlinformation disclosure (hereinafter referred to as ICID) and certainly go against thefunction of information disclosure, and also caused serious damages to the information ofefficiency of capital market. In order to solve this problem, the governments around theworld are forming policies of ICID, include the goal, content, time. The U.S Congressadopted and promulgated the “Sarbanes-Oxley Act” in2002,which formally put forwardthe mandatory requirements of listed companies to disclose their internal control report.In2010, our country introduced the“Supporting guidelines for enterprise internal control”,which symbolized our country enterpise internal control standard system has beenbasically established and the require of ICID has been improved. Therefore the study onthe theory of quality of internal control information disclosure has great significance.The paper examines the internal control information disclosure with the theoreticaland empirical methods. Firstly, this paper applies the principal-agent theory, Informationasymmetry etc to discuss the importance of internal control information disclosure;Secondly, we propose the research hypothesis based on the revies of domestic and foreignliterature; Thirdly, we analyze the current situation of ICID, using the sample of86Shangdong listed companies in2010and2011; Fourthly, we calculate the internal controlinformation disclosure index (hereinafter referred to as ICIDI) which is a index can be usedto measure the quality of ICID for all the86Shangdong listed companies in2010and2011based on the Dr Yang Yufeng’s research of quality evaluation system of ICID. Throughcomparing the quality of ICIDI in2010and2011, we find that the quality of ICIDI in2011is better than in2010. It means that the the promulgation of “Supporting guidelines forenterprise internal control” is efficient; Fifthly, we take empirical study on the influencefactors of ICIDI, using the sample of86Shandong listed companies in2010and2011. Theresearch find that size is significantly and positively related to ICIDI, the asset-liabilityratio is significantly and negatively related to ICIDI, the following factors are auditor size,listed time, operating coming growth rate, rate of return on net assets, listed place, theproportion of top ten shareholders, the current ratio, the nature of control rights; lastly, wepropose the policy suggestions on improve the ICID discipline based on the theory analysisand positive research results.