The Empirical Relationship Between The Public Corporation's Stock Performance And The Quality Of Internal Control,the Quality Of Financial Report

The paper selected the statistics of companies in A-share market and B-share of Shanghai and Shenzhen,SME board and GEM board from 2012 to 2014 which disclosed the quality of the internal control and had their unique internal control indexes as samples.The quality of the internal control,quality of financial report and performance of the companies were selected as the key indexes to do the empirical research about the relationship between the stock performance of public companies and the quality of internal control,quality of the financial report.The result showed that the stock performance had a positive relationship with the quality of internal control.The company which had a higher quality of internal control had a better stock performance.It also showed that the relationship between the performance and the quality of financial report was positive which indicted that if the company had a higher quality of financial report,its stock had a better performance.The quality of internal control could also have positive effect on the quality of financial report and then affected the stock performance positively.In reality,the managers should take the quality of internal control and financial report into consideration when making operational decisions.Managers should do their best to improve the quality of internal control.They should improve the quality of financial report too.The quality of the internal and financial report is higher,the stock performance is better.