Study On The Correlation Between Internal Control Information Disclosure And Stock Price Of Smes Board

With the accounting scandals of Enron having been exposed in 2001, there have raised all of other countries’ attention to the internal control. All countries have asked the listed company to build a sound system of internal control through enacting laws, regulations and standards which are relating to internal control. For the reason of strengthening the supervision and administration to internal control in our country,the MOF,the SFC, the Auditing Administration and many other departments also issued laws and rules about the internal control of the listed company. Actively promote listing Corporation of our country to build a more perfect internal control system.Now the research mainly concentrates on the motherboard market,and the study are mainly under the background of voluntary information disclosure of internal control system. To the mandatory information disclosure and the stock price,there is hardly any study u. The theoretical basis of this paper are Efficient Capital Markets,Principal Agent Theory and Signaling theory as the theoretical. By using the combination method of the normal ones and the empirical,this paper makes research to the relationship of internal control information disclosure and the stock price in SME board.In the study,research sample of the article are 576 listed companies in SMEs, the evaluation indexes are the internal control information disclosure index and design of the specific content and calculation of standard. Then we make statistical test for the Sample Firms’ average excess return rate and the cumulative abnormal return using the event study method to judge whether or not the stock market excess return a significant during the period,and judge whether the information disclosed in the event period has information content. The study found that,in the event period,some cumulative abnormal return rate of event window is through the significance test,and mainly concentrate on the days before the events announced. If we want to eliminate other factors’ influence,this article verifies the factors which influence the excess returns whether is from the internal control information disclosure by regression analysis. The results of regression analysis found that,the reaction which the stock market reacts to the internal control information is not much significant. This shows that the internal control information disclosure of the SME board has information content to a certain extent,although the company has restricted information content, and the listed company make full disclosure to the internal control information will have a positive effect on stock prices.