Study On Factors Of The Disclosure Quality Of Listed Company Internal Control Information

Since the1990s, a series of accounting scandals and violations happened, whichimpact on the world economy tremendously, these events led to the wide attention onEnterprise Internal Control. Following the United States enacted the Sarbanes-OxleyAct, China had introduced lots of rules and regulations to regulate listed companies’behavior of disclosing internal control information, and gradually formed a normativesystem composed by <The Internal Control Basic Norms> and its supporting guidelines.In this context, it is necessary to study the factors on the information disclosure level oflisted companies’ internal control, to provide advices to the information users.This paper made listed real estate companies in Shanghai and Shenzhen StockExchange as research object. Firstly it finished descriptive statistics on listed real estatecompanies’ disclosure of internal control information, and summed up some problems;Then it set up17research hypotheses from four aspects--corporate governance,operating conditions and external audits, internal control work organization, the basiccharacteristics of the company, while using the content analysis methods to draw scoreof sample companies’ internal control information disclosure level.Finally, the paperused method of correlation and regression analysis to study the factors on disclosurelevel of internal control information,and made some recommendations on basis ofconclusions of the study.According to the descriptive statistics, real estate listed companies’ overallsituation on internal control information disclosure was gradually improved year by year,but there were some problems existing: Basis for evaluation of internal controlself-assessment report were different and the report content wasn’t comprehensive;Disclosure proportion on independent opinion of independent director and theSupervisory Committee was low, and disclosure quality of Audit Unit assurance opinionis not high; Companies generally had not taken seriously of disclosure of internalcontrol deficiencies and its corrective measures. Regression analysis found that internalcontrol information disclosure level of listed real estate companies has significantnegative correlation with set up "four commissions "and earnings ratio, while positiverelated with asset-liability ratio,hire external advisory unit to assist and asset size. Butinternal control information disclosure level had not significant correlation with factorsof ownership concentration, proportion of management shareholding, Chairman and General Manager is one person, Rate of return on net assets, Inventory turnover ratio,Net operating cash flow per share, Debt coverage ratio, type of audit opinion,accounting firm’s reputation, internal control group include people who is familiar withthe business in each departments, the leader responsible for the implementation ofinternal control is CFO or audit manager, growth time after being listed.