Effect Of Mass Market Competitiveness Of The Internal Control Information Disclosure

The Shanghai stock exchange and shenzhen stock exchange developed the listedcompany internal control guidelines in succession in2006,This symbolized ourcountry’s internal control information disclosure by voluntary disclosure has entered astage of mandatory disclosure.Although the listed company’s internal controlguidelines requires all listed companies disclosure internal control information,but thequality of our country internal control disclosure of information is still not high,theinternal control information disclosure of many listed companies become a mereformality, there are not any substances.And what is the impact that the marketcompetitiveness on the listed company’s internal control information disclosurequality? This is the main content of this paper to study.To explore the influence of market competitiveness on the quality of internal controlinformation disclosure,first of all, we should accurate measurement the quality ofinternal control information disclosure,From the perspective of information users, thispaper defines the quality of internal control information disclosure as the degree ofinternal control information disclosure can satisfy the information users to make adecision. This requires disclosure of internal control information to understandabilityand decision usefulness,namely,The internal control disclosure of information shouldinsist on the principles of authenticity, integrity, timeliness, importance andcomparability.This article uses timeliness, authenticity and integrity as measureindex of internal control information disclosure quality，it sets up Level3measureindex system,the first index is timeliness (X1), authenticity (X2) and integrity(X3).Due to the enterprise discloses internal control information in the annual report,the timeliness of internal control information disclosure is the timeliness of the annualreport disclosure,in this paper, using the length of time between the annual reportdisclosure date and the annual report disclosure deadline (April30) to measure thetimeliness of internal control information disclosure.Authenticity index consists ofthree secondary index,one is the type of internal control auditing reports issued bycertified public accountants (X21); two is whether the Certified public accountantschanges compares with last year’s (X22); three is the enterprise is whether or notcondemned or punishment by the CSRC or exchange (X23).In reference to theenterprise internal control basic norms, integrity index consists of five secondaryindex:Internal environment (X31), risk assessment(X32), control activities (X33),information and communication (X34) and monitoring (X35),Five secondaryindicators set up the third indicators respectively, a total of25third indicators, manualassignment for the indicators according to detail of internal control informationdisclosure in annual report. In the form of questionnaire to determine the weight oftimeliness, authenticity and integrity, introducing the "entropy" of physics concept todetermine the weight of secondary and tertiary, using the entropy weight method todetermine the weights of secondary and tertiary.After determining the measurement method of internal control informationdisclosure quality, this paper uses the multivariate linear regression model to testdata of listed companies full implement the system of internal control in2011and 2012, to analysis the influence of the market competitiveness on the internal controlinformation disclosure quality.In the empirical analysis,the samples are divided intotwo groups of voluntary and involuntary,The empirical results show that: In the caseof voluntary disclosure the internal control information, market competitiveness andinternal control information disclosure quality are significant positive correlation;While in the case of mandatory disclosure internal control information, marketcompetitiveness and internal control information disclosure quality are significantnegative correlation. Descriptive statistical results show that: The voluntary disclosureof the listed company’s internal control information disclosure quality is lower thanthe mandatory disclosure of the listed company’s internal control informationdisclosure quality, So the internal control system of voluntary disclosure internalcontrol information of listed company is much more sound, the disclosure ofinformation is much more perfect.This study mostly contains five chapters as follows:Chapter One introduces the research background, research significance, researchcontents and framework, research method, the main innovation points and so on;Chapter two,combing summarized the domestic and foreign scholars’ research on thequality of internal control information disclosure, leading to the research contents;Chapter Three,introduce the basic theory of the quality of internal control informationdisclosure, and analysis the correlation of market competitiveness and internal controlinformation disclosure; Chapter Four is the empirical research design, this part putsforward the research hypothesis, introduces the sample selection and data sources, anddesign the related variables and the empirical model to empirical test and analysis;Chapter Five is research conclusion and suggestion, this part summarizes the researchconclusion of this article according to the results of the empirical, put forward thecorresponding policy suggestions, and points out the limitations of this study.