Study On Internal Control Information Disclosure Quality Of CHINEXT Listed Companies

On June28,2008, the Ministry of Finance, Securities and Futures Commission, China Banking Regulatory Commission, China Insurance Regulatory Commission jointly issued the Enterprise Internal Control Standards. Then, The Enterprise Internal Control Supporting Guideline was jointly issued on April26,2008.Our country internal control standard system has been basically formed so far. The issue of Enterprise Internal Control Standards and its supporting guidelines has made our country internal control standards form an organic whole. It is convenient for the public company to perform related internal control standards as well as conducive to optimize the internal control lately.Although the public companies on Growth Enterprise Market (GEM) are different from the companies on Main Board, they are all belong to the public companies in some meanings. And, as an important part of our new capital market, it is important for the public companies on GEM and the whole capital market to study the internal control information disclosure quality of public companies on GEM.It selected281public companies which are listed on GEM until December31,2011as the samples in the paper. We evaluated the quality of internal control information disclosed in2011and2012.It mainly get the internal control information from the self-evaluation report and the assurance report on internal control. It consists of five parts in the paper.Part one, introductions. In this part, first, it introduced the selected topic background and meaning. Then collated and summarized the literature about internal control information disclosure both in China and abroad. Last, it introduced the main research methods and the innovation which are all groundwork for further research.Part two, theoretical analysis and concept define. In this part, it analyzed the necessity and importance of internal control information disclosure through equity theory, signal transmission theory and principal-agent theory.And at the same time,defined the concept of internal control information and internal control information disclosour.Part three, the summary about the internal control information disclousure of public company of GEM. First, It introduced the general situation of GEM, the characteristics of the public companies on GEM. Then, It states the relevant provision about the information disclosure and the internal control information disclosure situation of GEM.Part four, the establishment of internal control information disclosure quality index.First,it states the methods of internal control information disclosure quality and takes the content analysis method to evaluate the internal control information disclosure quality of GEM companies;then detailedly explain the establishment of evaluation system and analyse the evaluation results through descriptive statistics.Part five,regression analysis about the influence factors of internal control information disclosure quality in GEM companies.It use empirical analysis to analyse the influence factors of internal control information disclosure quality.In this paper,it refers to the research before and summarize13factors which probably influence the internal control information disclosure quality of GEM companies.The result shows that growth,controlling shareholders nature and executive compensation is positive correlation to the internal control information disclosure quality;the proportion of independent directors and the board size is negative correlation to the internal control information disclosure quality.The functional quality,company size,region, industry and the auditor’s reputation are uncorrelated to the the internal control information disclosure qualityPart six, conclusion, suggestion and prospect. According the research before, draw the conclusion and give the suggestions. Last, put forward some deficiencies as well as the follow-up research direction.According to the statistical analysis about the internal control information published by GEM companies, we found that the disclosure of self-evaluation report and the assurance report on internal control of GEM companies is better in the way of the disclosure numbers. While, in the way of the contents disclosed by the company, the overall level of internal control information published by the GEM companies is lower. Mainly show up as a mere formality and general optimistic, lack of innovation about internal control information disclosure and at the stage of against supervision. The formats of self-evaluation report on internal control are varieties. There is no comparability among different companies, and there is also an obvious gap among them. So, suggest that the relevant regulatory departments actively promote to revise and improve the laws and regulations, improve the legal status, enhance the strength of supervision and punishment, strengthen the responsibility of internal control information disclosure and uniform the rules of internal control information disclosure and the formats and contents as soon as possible. At the same time, the public companies should change their idea, positively cultivate talents in internal control and increase the quality of internal control information disclosure.