A Research On Listed Companies Internal Control Deficiencies Disclosure Based On Supervision Mechanism

In recent years, the imperfect internal control system and risk control mechanism cause many business failures or financial frauds. So the enterprise internal control has received the attention from all walks of life. While internal control defects often lead to internal control failures which make the enterprise cannot effectively prevent the occurrence of errors or fraud. Therefore, internal control deficiencies disclosure has got attention from academics. On the one hand, the quality of the company’s internal control deficiencies disclosure not only reflected whether they have established their own internal control system, but also affected the judgments and decision-making of investors, creditors and regulators, on the other hand, the continuous improvement of the disclosure of internal control defects system helps the relevant regulatory department to the enterprise internal control regulation. The main content of this paper is the affecting factors of the disclosure of internal control deficiency of Chinese listed company and the affecting of Internal control deficiency to equity capital.In studies of the affecting factors of the disclose internal control. We use2012, the main board of the Shenzhen Stock Exchange A-share listed companies to disclose internal control self-assessment report as a sample, and we analyzed factors based on the perspective of internal supervision. The results showed that the number of the stocks that board of supervisors have and the independence of the audit committee have significantly negative correlations to the disclosure of internal control defects. The paper also mainly examines how the condition of disclose internal control affect the equity capital. Through the study found that disclosure of internal control defects and no significant correlation between equity capital cost, and make the relevant explanation for the results. Finally, on the basis of the conclusions obtained in this paper, we put forward some policies and suggestions aiming at perfecting the enterprise internal control defects revealed problems.