A Study On The Influencing Factors Of Internal Control Information Disclosure Under The Corporate Governance

In recent years, a series of financial fraud occurred both at home and abroad, making the importanceof internal control more and more significant, internal control information disclosure and related problemshas become a hot topic of both theorist and practitioners. Government regulators need to supervise andevaluate the enterprise, external stakeholders need to judge and make decisions, and internal controlinformation is the essential information. The higher of the quality of the internal control informationdisclosure of listed companies, the more reliable of the investor’s decision, the deeper stakeholdersunderstand internal control information, and deep study of internal control information disclosure hasbecome a topic worth studying. As being demanded, western developed countries have achieved manyresearch results on internal control information disclosure, listed companies also actively disclose internalcontrol information. While our country’s capital market is still not mature enough, the accountinginformation disclosure regulation still has loophole, so it’s particularly important to strengthen the internalcontrol information disclosure of listed companies.Sound corporate governance is the core of modern enterprise system, and the internal control is animportant part of corporate governance structure. Internal control information disclosure is an importantpart of the company’s external information disclosure, and company’s internal governance environmentcan be seen from the internal control information disclosure. The higher the quality of internal controlinformation disclosure, the more integrated the content is, the higher the invest potential of the company.Our country has successively issued a series of laws and regulations, has improved the quality of internalcontrol information disclosure of listed companies to a certain extent. However, the quality is not very highat present, the most important reason is the imperfect of corporate governance structure, so from theperspective of corporate governance, improving and optimizing the corporate governance structure canimprove the quality of internal control information disclosure.Based on the research literature at home and abroad, this paper studies the relation between corporategovernance structure and internal control information disclosure for validation analysis, selected the data ofa sample of736listed companies on the Shanghai main board A-share market, financial companies, ST listed companies, and suspend or delisting of listed companies and the companies that don’t have completedata are eliminated, released by the Shanghai from2010to2011for empirical research. On the basis oftheory analysis, this paper selected five representative variables to measure the corporate governancestructure, including the nature of the owners, equity concentration, the proportion of independent directors,act as the chairman and general manager concurrently, the number of the board of supervisors, and twocontrol variables, namely the company size and corporate profitability as explanatory variables, and theinternal control information disclosure quality is (ICDI) as the explained variable for research. Meanwhile,a scoring standard of internal control information disclosure quality is (ICDI) is built to score the samplecompanies. This paper selects descriptive analysis, correlation analysis and multiple linear regressionanalysis as the method of statistical analysis, using SPSS17.0statistical software to verify the characteristicof the corporate governance structure on internal control information disclosure quality.The research result shows that the corporate governance structure can significantly explain quality ofinternal control information disclosure as a whole. For details, the nature of the owners, equityconcentration, the proportion of independent directors, the chairman and general manager is significantlyrelated to the quality of internal control information disclosure in different degree, but the number of theboard of supervisors isn’t significantly related to internal control information disclosure quality. Accordingto research conclusions, this paper proposed to improve the internal control information disclosure of listedcompanies from optimizing the equity structure, perfecting the structure of board of directors, improvingthe structure of the board of supervisors and raising awareness of management authorities disclosed.