Government Supervision,Internal Control And Environmental Information Disclosure Quality

Since the reform and opening,China has stepped into the first year of 13 th Five-Yearmade.Under the depressed big environment,Chinese developing speed is significantly higher than world average speed.But to a certain extent,our economic development is based on the expense of the environment.Environmental pollution accidents such as smog happened from time to time,which seriously affect everyone's daily life.It makes the public pay more and more attention to the environmental pollution problem.From a certain level,this brings some external pressure to the enterprise's environmental information disclosure.Enterprises are the carrier of the economy,but also one of the main makers of environmental pollution.Every movement of the enterprises will be under the supervision from all social circles.Therefore,enterprises should strictly follow the relevant environmental protection laws and regulations to pay attention to the impact of their economic behavior on the environment.Apart from the pressure of all social circles,the government agencies,as the stakeholders,will be more focused on enterprise's environmental protection behavior.They also require the enterprises to protect the environment as an important task to fulfill social responsibility which can not be ignored.In order to encourage enterprises to actively conduct environmental information disclosure,China has promulgated a series of laws,regulations and normative documents about strengthening environmental protection and environmental information disclosure.All of the actions provide the enterprise to standard their environmental information disclosure a legal guarantee.The existing research mainly analyses variety influence factors on environmental information disclosure,most of them study from the external environment or the perspective of corporate governance,there are few studies based on the internal control and the government supervision.This paper regards the government regulation as the external control mechanism and internal control as the enterprise's self restraint mechanism.Both of them may have an important impact on the quality of corporate environmental information disclosure.Based on this,this paper mainly studies the relationship among government regulation,internal control and the quality of environmental information disclosure.First of all,based on the theory of corporate social responsibility,stakeholder based-on theory,legitimacy theory and public pressure theory,create a theoretical framework to government supervision,internal control and the quality of environmental information disclosure Secondly,give the definition of the quality of environmental information disclosure and internal control,give the scores to environmental information disclosure quality through the method of content scores evaluation,select the DIB internal control index as the effectiveness of enterprise internal control,regard Chinese pollution regulatory information disclosure index(PITI index)as the level of government regulation.Then,select the data from the 2013 to 2015 heavy polluting industries listed companies from Shanghai and Shenzhen Stock Exchange as research samples,use Excel,SPSS software and descriptive statistical analysis,correlation analysis and regression results,to examine the relationship among government supervision,the internal control quality and environmental information disclosure quality,and get a further research to prove that the higher level of government regulation,the relationship between the internal control and the environmental information disclosure will be more prominent.The research finally gets following conclusions: Firstly,in the heavy polluting industries,the better internal control is,the higher quality of information disclosure;Secondly the higher level of government regulation,the environmental information disclosure quality will be better.Thirdly,in the higher level of government regulation areas,the correlation between internal control and the quality of environmental information disclosure will be stronger.Finally,according to the conclusions,make up the suggestions from the national government departments and enterprises themselves to improve the quality of corporate environmental information disclosure.From the view of government sectors,the government should establish and improve the environmental protection laws and regulations in accordance with the local situation.From the view of enterprises,enterprises should constantly strengthen their internal control system and improve the corporate governance structure.Through the above internal and external supervision mechanism,make enterprises realize the necessity and importance of environmental information disclosure,make the enterprises more likely to disclosure environmental information.This can not only help enterprises to set up a positive figure,get recognized by the community,make the enterprises' development more healthy and sustainable,but also can contribute to the maintain the interest of government departments,investors and other stakeholders,and ultimately achieve the harmonious development of enterprise and social win-win situation.