Research On The Internal Control Information Disclosure Of Chinese Manufacturing Listed Companies

Information is the deep influencing factor of the security market’s effectiveness. The service efficiency and the operation effect are determined by the trueness and adequacy of the disclosed accounting information. Since21st century, many financial fraud scandals have come up. Therefore, the disclosure of the internal control information gradually becomes the focus of the scholars and managers who concern with the enterprise actual operation. The disclosure of the listed companies’ internal information can not only make the investors, creditors and regulators increase efforts to implement the companies’ external supervision, but also enable the companies to establish perfect understanding of their own internal control. In2002, the United States promulgated "Sarbanes-Oxley Act". This marks the American internal control information is changed from voluntary disclosure to mandatory disclosure. The promulgation of this act has profound influence on the internal control system construction of our country.In order to make the construction of our security market more standardized, in June and September of2006, Shanghai and Shenzhen Stock Exchange have issued "Shanghai Stock Exchange listed company internal control guidelines" and "Shenzhen Stock Exchange listed company internal control guidelines". These two guidelines require that the disclosed annual report should include the internal control information and views issued in the company annual self-evaluation report and CPA audit self-evaluation report. In June of2008, the Ministry of Finance led and issued "basic norms of enterprise internal control". In2010,"supporting guidelines of enterprise internal control" was issued. This marks our country enterprises formed basic internal control system and it has important practical significance to the improvement of our listed companies managing level.Manufacturing industry is the necessary material basis for human society and is the basic conditions for the construction and development of city economy. During the20years of reform and opening up, the manufacturing industry of our country has made great achievement. As the pillar industry, manufacturing industry has laid a solid foundation for the future national economy development of our country. However, with the development of technology and the development of science and technology, manufacturing, but there are many events directly reflects the frightful to the ear, making internal control construction industry is not perfect. The manufacturing industry of national economy, so the effective internal control, build perfect and accurate disclosure of internal control information be imperative.Although there is predecessor in the research on manufacturing industry the researching year is in2006and data is old. So the author screens a valid sample of432listed manufacturing companies from2009to2011, including202in Shanghai Stock Exchange and230in Shenzhen Stock Exchange. Through statistical analysis and case analysis, the author introduces the internal control information disclosure status of listed manufacturing companies, summarizes the existing problems, analyses the reasons and finally puts forward the corresponding improvement suggestions. This paper is divided into six parts. The specific contents are as below:The first part is the introduction, including the researching background, significance, contents, methods and innovation points.The second part is the relevant theories and literature reviews of the internal control information disclosure. The conceptual framework part introduces the concept of internal control and internal control information disclosure. The theoretical basis part of internal control information disclosure mainly introduces three theories: principal-agent theory, asymmetric information theory and signaling theory. For the aspect of literature reviews, the international research includes four aspects, the status, cost, influencing factors and deficiencies of internal control information disclosure. The domestic research includes three aspects, the internal control information disclosure status of our country, the influencing factors and international compare. There also introduces the domestic and international research reviews.The third part is the current situation of internal control information disclosure of listed companies. First, reveal the present disclosure situation of internal control information of manufacturing listed companies by overall situation and typical cases analysis of the samples. Secondly, summarize the following four problems:lack power; position and format are not unified; the evaluation standards of the internal control self-evaluation report and the CPA audit are not unified; the internal and external supervisions are weak.The fourth part is the cause analysis of the internal control information disclosure problems, mainly from the company internal and external two angles. The reasons of company internal angle are:the listed company internal control is not in strong awareness; company governance structure is not perfect; the listed companies take the disclosure cost into consideration; the internal audit and supervision of manufacturing listed companies are deficient; the listed companies keep commercial secrets. The reasons of company external angle are:the internal control construction and the evaluation standard are not unified; internal control self-evaluation report audit basis is lacking; the effective demand of internal control information is insufficient.The fifth part is to put forward improvement suggestions in view of the above reasons. The first is to improve the governance structure which can be enhanced from four aspects:establish separation of three powers by the core of check-and-balance system; improve the independent director system; perfect function of the board of supervisors; strengthen the internal audit capacity. The second is to regulate the format, content and evaluation standards, implement the application of the standards and strengthen the supervision of internal control information disclosure. The third is the stakeholders put more emphasis on the internal control information. Hope that these suggestions can help to solve the internal control information disclosure problems of listed companies and improve the internal control system construction.The sixth part is the conclusion.