A Study On The Impact Of Internal Control On Information Disclosure Of Listed Companies Under The Institutional Environment

Information disclosure has been the focus of investors' attention, it is not only related to the interests of the investors, but also related to the healthy development of listed companies and the capital market, also plays a pivotal role in social life. In recent years, due to lack of the internal control system and the poor implementation, large enterprises appeared frequently financial scandals or even collapse, which gave the investors and the whole capital market a warning. With the continuous progress of the market process, the institutional environment has penetrated into all aspects of corporate governance and influenced the various decisions of the enterprise.Firstly, the related literature of internal control and information disclosure in the institutional environment are sorted out and summarized. Secondly, this paper analyzes the impact of internal control on information disclosure, and the influence mechanism of internal control on information disclosure within the institutional environment, which including financial development, government intervention and law environment. Thirdly, the listed companies in Shenzhen main board from 2011 to 2014 are selected as research samples, and regression models are constructed to test the impact of internal control on information disclosure. Finally, we study how the institutional environment, which including financial development, government intervention and the legal environment, influences the internal control and information disclosure. The results show that the effectiveness of internal control of listed companies in Shenzhen main board can improve the quality of information disclosure. The degree of financial development has a significant moderating effect on the relationship between the effectiveness of internal control and the quality of information disclosure. Listed companies in better financial development region have more effective internal control, the higher the quality of the companies'information disclosure. Taking the existence of government intervention into account will strengthen the positive impact of effectiveness of internal control on the quality of information disclosure, that is, the more effective internal control, the higher the quality of the companies' information disclosure. The quality of legal environment has a certain moderating effect on the effectiveness of internal control and the quality of information disclosure, but the effect is not significant too. Listed companies in a better legal environment can weaken the positive impact of effectiveness of internal control on the quality information disclosure.This research can help companies make the reasonable information disclosure decisions for the long-term interests, and focus on the construction and implementation of companies' internal control system to enhance the companies' ability to cope with risk. Meanwhile, it also provides investors an alarm to make the right investment decisions and safeguard their rights and interests.