Study On Relationship Between Information Transparence Of Internal Control And Company Performance In The Listed Companies In Hainan

Internal control is an important link to rationalize corporate governance, it is also an integral component of the corporate governance mechanism, at the same time information disclosure is a bridge that delivered information from the listed company to its investors and the public, it provide important information to protect the interests of outside investors and the public.After analyzing the problems appeared in the information disclosure of internal control of listed companies in recent years, most scandals in the listed company are all started from the low level of internal control information disclosure to the useless of internal control. In view of this, after the publishing of the U.S. Sarbanes-Oxley Act, Shanghai Stock Exchange and Shenzhen Stock Exchange were introduced to the two internal guidelines for the listed company’s internal control, they were the Guidelines for Internal Control of the companies listed on the Shanghai Stock Exchange and the Guidelines for Internal Control of the companies listed on the Shenzhen Stock Exchange,the two guidelines were both set up the specific requirements of information disclosure of listed company’s internal control.Internal control information disclosure of listed companies will undoubtedly result in the increasing the related costs of the companies, but on the other hand,the improvement of the internal control information transparency also represents an effective internal control, it can effectively reduce the problem of information asymmetry in the capital market, it can also reduce the financing costs of the company as well, and thus favorable for the company’s operating performance. So can we say that the improvement of the internal control information transparency and the performance of the company have some kind of dependency relationships? This issue is a very important theoretical and practical significance for the improvement of listed companies’internal control and assessment of corporate performance in listed companies. Considering this, this article selects listed companies in Hainan Province in2009-2011as samples, makes an empirical study on the information disclosure of internal control in these companies, and to reveal the positive correlation between the internal control information transparency and corporate performance.This paper is divided into six parts:the first part is the introduction, it elaborates background and significance of the research, and clarifies specific ideas and research methods to establish the basic framework of the thesis, and innovations possible description of the paper as well as insufficient; the second part describes the relevant theoretical foundation as well as domestic and foreign scholars research; the third part elaborates the present situation of internal control information transparency in listed companies, and selects index to measure internal control information transparency of the listed company in Hainan the information and analysis the data; the forth part summarizes proposed the hypothesis based on previous research experience and empirical research to analyze the internal control of listed companies in Hainan correlation between information transparency and its corporate performance; the fifth-part of the empirical testing of internal control over financial information transparency affects their company’s performance; the sixth-part of the research finds and policy recommendations and suggestions for future research to improve the direction.