Study On Internal Control Information Disclosure Quality And It’s Influential Factor Of GEM Listed Company

The listed companies of GEM as one of new capital market in China play an importantrole in our capital market. The quality of internal control information disclosure directlyaffects the investors’ decisions. It also affects investor’s confidence in the capital market. Theimprovement of it is beneficial to optimize the governance structure of listed companies. Italso urges the listed companies to improve the efficiency and effectiveness of operating. Atthe same time, it alleviates the information asymmetry phenomenon of the GEM, enhancestheir ability to resist the risk from securities market. Thus the capital market can allocateresources more effectively. This research can provide reference for the set of internal controlguidelines applying in the listed enterprise of GEMTo measure the quality of internal control information disclosure, firstly, the paperdefines the concept of “internal control information disclosure quality” and the qualitycharacteristics of the internal control information disclosure should possess. Then, build thequality index of internal control information disclosure,(ICIDQI). The index divided intothree levels used to measure the quality of internal control information disclosure. It includes43indexes in total. All of the indexes has the corresponding evaluation standard, and use thesubjective and objective assignment method to give weights. Then calculate the final scoreand evaluate the internal control information disclosure quality from timeliness, authenticity,integrity, and correlation. At present, the internal control information disclosure of listedcompanies of GEM is not high.Evaluating the disclosure quality of internal control information, this article analyzes theinfluence factors of internal control information disclosure from three aspects; they are thecorporate governance structure, the company’s financial condition and accounting firmcharacteristics factors. Combined with the hypothesis, based on2012annual report of GEMwe select9independent variables to analyze, they are the stock rights concentration, the ratioof independent directors, the chairman and general manager whether joining together, themeeting number of the board, profitability, growth, ability to resist risk, accounting firm’sreputation and audit opinion type. The results show that the chairman and general manager whether joining together and ICIDQI is significantly negative correlation, the meeting numberof the board and ICIDQI is significantly related to, the stock rights concentration, the ratio ofindependent directors show no significant impact on the ICIDQI; The company’s financialfactor: the company’s growth and ICIDQI significantly negative correlation, the profitabilityof company and the resist risk ability show no significant impact on the ICIDQI; Accountingfirm characteristics: accounting firm reputation, the types of audit opinions show nosignificant effect on ICIDQI.Finally, this paper put forward some countermeasures and Suggestions from the aspectsof regulators and the listed company according to the results of the study. Regulators shouldfurther unify and refine the evaluation and disclosure rules of internal control information,especially unify the self-evaluation report content and format. Excellent template can beappropriately to promote. At the same time, strengthen internal control effectivenessresponsibility main body’s legal responsibility. In addition, the listed company should perfectgovernance structure, be carefully to the construction of internal control and improve theconsciousness of risk disclosure. Besides, companies should introduce professional talents ofinternal control, risk managements and audit, standardize information disclosure content andformat, and enrich internal control information disclosure.