The Correlation Of Disclosure Of Internal Control Deficiencies And Corporate Performance

At present, China is gradually implemented internal control standards and related guidelines. The purpose of this paper is to analyze the relationship between internal control deficiencies disclosure and company performance on the main board listed companies in Shenzhen Stock Exchange.Firstly, the article combs the development of domestic and international norms and foreign scholars on internal control relevant research, and found that the internal control research focuses on factors that influence the internal control disclosure of information, the characteristics of the company that disclose the internal control deficiencies and whether the disclosure of information is an voluntary, the research on the relationship between information disclosure of internal control weaknesses and company performance is unusual, therefore, the article take this an a breakthrough point.Secondly, the article summarizes the situation of whether the disclosure on the main board listed companies in Shenzhen Stock Exchange. Through the internal control self-assessment report as the source of data about whether the company discloses the deficiencies. This paper identifies the value of the independent variable in the regression model. It provides the foundation of descriptive statistics, correlation analysis and regression analysis.Again, according to the disclosure of internal control deficiencies listed company on the Shenzhen board the paper groups the different groups. The independent samples T levels were examined simultaneously descriptive statistics, we also do the correlation analysis and regression analysis to verify the correlation between the disclosure of defects and the performance of the company.Finally, through empirical analysis we get the following conclusions: Expect for the ROE, whether disclosing defects or not and company performance has no significant correlation, indicating that the disclosure of internal control deficiencies have not yet become the norm,the influence of whether disclosing defects or not affects the company’s performance has not been fully reflected. Therefore, China should guide the company to disclose the deficiencies, specify the form of disclosure and the standard of deficiencies and lay the foundation for the development of internal control in our country.