Research On Internationalization,financial Capacity And Quality Of Internet Financial Reporting System

"The Belt and Road" strategy has brought new opportunities to Chinese enterprises."Internet plus" strategy help enterprises use Internet technology to strengthen their own management,while the Internet financial reporting system is an important way for the application of Internet technology.In order to develop,more and more enterprises are going out to explore the international market.There are a lot of risks and uncertainties in the internationalization of enterprises,it has been found that the information asymmetry phenomenon of enterprise internationalization is obvious,which leads to the agency costs rising sharply.To reduce the agency costs,enterprises pay more attention to information disclosure,which can help enterprises improve the quality of Internet financial reporting system(IFRS).This paper adopts the empirical method by selecting the corporate website of all Chinese companies listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange up to December 31,2014 as samples.This study focuses on three subjects:(1)the relationship between corporate financial capacity and the quality of IFRS;(2)the relationship between the degree of internationalization of enterprises and the quality of IFRS;(3)the impacts of the degree of internationalization of enterprises on the relationship between corporate financial capacity and the quality of IFRS.The findings provide evidence of a significant association between the quality of IFRS and the variables such as profitability,development ability and internationalization.However,leverage and asset management capability were found to have insignificant association with the quality of IFRS.I find that internationalization have significantly negative effect on the relationship between profitability and the quality of IFRS.I also find that internationalization have no significant effect on the association between development ability and the quality of IFRS.