Research On The Relation Between Information Disclosure Of Internal Control For Listed Companies And Financial Performance

In the early21th century, a series of financial fraud scandal broke out in the global and it greatly aroused the concern of the efficiency of capital market. The worldwide increase supervision of the internal control of the listed companies and set off a wave of strengthening internal controls. Our country also comply with the requirements of the times and the supervision departments have issued the regulations related. The disclosure of information stepped into the phase of mandatory disclosure of internal control of listed companies in China and internal control information disclosure quality has been significantly improved. To improve the mechanism of internal control information disclosure of listed companies and the quality of information disclosure of internal control can strengthen the capital market information transparency, improve the company management and increase the financial performance.This paper starts from the summarization the research documents both at home and abroad about the relationship between information disclosure of internal control for listed companies and financial performance and integrates related theories such as agent-principal theory, information asymmetry theory, signal theory, efficient market hypothesis, etc. According to the concrete condition of our country, it describes the development and present situation of the information disclosure of internal control for china’ listed companies by statistical analysis; On the basis, it selects listed companies in Shanghai and Shenzhen Stock Exchange from2010to2011as samples, uses statistical software, builds a multiple linear regression model and analyses the relationship between information disclosure and financial performance. In the end, the article combines the theoretical research and empirical research and puts forward some countermeasures and suggestions for the development of information disclosure on internal control to improve companies’ financial performance. This paper is divided into the following five parts:The first part is the introduction of the paper. It mainly introduces the background and significance of the study, reviews and summarizes the main research results both at home and abroad, and then briefly introduces not only the ideas and methods of this study but also the possible innovations and the insufficiency.The second part is the relevant theoretical basis. At first, it gives the explanation of information disclosure of internal control. Then, it describes the concept and evaluation methods of the company financial performance. On the basis, it combines information disclosure of internal control and financial performance and integrates related theories.The third part is the analysis of present situation. At first, it describes the institutional evolution and present situation of the information disclosure on internal control for china’ listed companies in detail. Then, it analyses the problems and insufficiency of information disclosure.The forth part is the empirical analysis. This part selects the sample data and indicators, builds a multiple linear regression model, then uses the statistical software SPSS to take the empirical analysis on the relationship between information disclosure of internal control and financial performance. Finally, it summarizes and analyses the test results.The five part is the conclusion and suggestion. According to the theoretical research and empirical research, the paper comes up with some countermeasures and suggestions for the development of information disclosure on internal control. Besides, it points out the future research directions.The empirical result shows that:(1)The quality of information disclosure of internal control of listed companies in China improved, but the overall situation is not ideal and there are still a few companies which do not disclose or disclosure quality is low.(2)There is a positive correlation between the quality of information disclosure and financial performance of the listed companies.(3)Listed company which has a higher ownership concentration degree and a bigger asset scale can improve the rate of return on net assets more to enhance its profitability so as to achieve a better performance of the market. Listed company which has a large board of directors and a high asset-liability ratio affects the rate of return on net assets increase.(4)To improve the degree of equity concentration, expand the scale of assets and have the appropriate proportion of independent directors can significantly improve the company’s earnings per share. Listed company which has a moderate board size and an appropriate level of financial leverage tends to improve the quality of information disclosure and the company’s business performance. These conclusions have some supplement to the existing research and can provide feasible suggestions to improve the quality of information disclosure.