Research On Factors Influencing The Quality Of Information Disclosure Of Internal Control Of Listed Companies In China

Internal control is a progress for achieving business goals which is carried out by boardof directors and management and other members of a company.The recent spate of businessfailure, financial fraud cases of many listed companies,investigate its reason, due to thecompany internal control failure. The goals of internal control become with the developmentof the enterprise, so the problem of studying internal control is urgent and persistent. In2001,the accounting scandal of the energy giant company—Enron broke out. Subsequently, theexposure of WorldCom, Xerox and other accounting fraud case, which severely dampenedinvestor confidence and capital markets suffered a heavy blow, had brought the huge impacton America’s economy. In2002, the United States enacted the SOX Act (Sarbanes—OxleyAct), made strict requirements to the internal control. It also marked the United States fromthe voluntary disclosure of information to mandatory disclosure of information.Companies entrance the capital market by listed and it may bring enterprises a lot ofmoney. Some companies don’t have the qualification of listed, however the manager of thesecompanies make up the accounting information and transaction by earnings management inIPO process to get the listed permission. Many companies failed after the listing, then theyfallen into a shortage of funds and the crisis of bankruptcy. It harmed the interests of investorsand creditors. In1997, Red light industrial co., LTD.which under the condition that itsequipment cannot support the normal production for listing qualifications, hiding in theprospectus of this important matters and make up the financial report. It produced loss when itwas in listed days. The incident attracted attention of investors and regulators and internalcontrol construction of enterprise and internal control information disclosure quality. By theinvestigation and study, we found that enterprise internal control system is not perfect and itlacks of effective supervision and management of the external supervision department, thenthey led to the fraud case occurred.Based on the internal control information disclosure of listed companies, I will divide mythesis into the following parts：Firstly, I will introduce the background, importance of my study, at the same time, thecondition of the study domestic and overseas. Secondly, I expounds the concept of internalcontrol framework, and the principal—agent theory, asymmetric information theory and thetheory of signal transmission；Thirdly, I will introduce the factors of influencing the internalcontrol information disclosure. And this part is my significant part. I randomly selected101listed companies as research samples. I study the internal control in the stage of its IPO prospectus disclosure of information, and then I put forward assumptions and build a multipleregression model. Then I use SPSS software to analysis the descriptive statistics correlationand regression. Finally, I explained the result of the research and make the analysis, and givesome suggestions.