Study On Internal Control Information Disclosure Of Listed Company In China

Internal control information has caused wide public concern all over the world for it is an important criterion for information demanders to estimate the business circumstance and the reliability of financial report. As a lot of financial scandals occurred in international companies, such as such as Eron and Worldcom, the U.S. Congress passed the Sarbanes-Oxley Act which was the most rigorous provision about internal control information disclosure. Since then internal control information disclosure in America stepped into a mandatory stage. In China the "Shanghai Stock Exchange listed company internal control guidelines" and "Shenzhen Stock Exchange listed company internal control guidelines" promulgated in2006, and "basic standard for enterprise internal control internal control" promulgated in2008, all presents specific standards requirements for the internal control information disclosure. They make mandatory requirements on China’s internal control information disclosure throughout all the listed companies, which shows the importance of internal control information disclosure.This paper presents a thorough study of internal control reports of listed companies. Sorting out domestic and foreign research of internal control disclosure, this paper has improved the evaluation system of internal control information disclosure at the core of five elements in internal control, and the evaluation system can be used in the quantification of internal control information and in the analysis of influencing factors of internal control information disclosure. This paper has reached the following main conclusions:the internal control information disclosure level is positively correlated with company scale, profitability and accounting firms reputation, and negatively correlated with the first largest shareholder; the listed companies should introduce institutional investors to optimize their ownership structure; independent directors, board of supervisors and board of auditors should certainly play their due roles; the regulators must unify all the rules and regulations to make certain of content, format and evaluation standards of internal control information, so that the internal control information disclosure could be standardized. Practice has shown that disclosing internal control information in a high level is not only beneficial to promote market reputation of listed companies, protect investors’ benefits, and achieve maximum of respective benefits, but also to strengthen investing confidence of the investors and promote its virtuous development.