A Study On The Relationship Among Internal Control Information Disclosure,Operating Efficiency And Firm Risk

With the rapid economic and social development,firms facing various opportunities and challenges.Firms unilaterally pursue value maximization while ignoring various uncertainties faced by firms in the process of development,leading to an increase in risks.With the appearance of a series of financial scandals at home and abroad,and the business turmoil encountered by many companies during the economic crisis,the problems of weak internal control,low operating efficiency and high risk of some enterprises have been exposed.Therefore,strengthening internal control information disclosure of the firm and controlling firm risks has increasingly become the focus of research.However,the previous research in the area of internal control information disclosure mainly focused on the disclosure's quality evaluation,the impact of disclosure on the value of the company,earnings quality and auditing.Ignored the impact of internal control information disclosure on efficiency and firm risk.In the current domestic and international strengthening of the disclosure system and the disclosure of internal control information from the voluntary disclosure to the mandatory disclosure.Aiming at the weakness of the relationship between internal control information disclosure,operating efficiency,and firm risk.This paper explores the internal control information disclosure and five elements of internal control disclosure quality's influence on the enterprise risk and it's path.Combined with background of domestic institutional environment,further observe the property and marketization degree's influence to the relationship between internal control information disclosure and the firm risk.The theoretical and empirical analysis of this paper provides a theoretical reference for strengthening the construction of China's internal control system and promoting the implementation of the internal control information disclosure system of listed companies in China,and has certain significance in maintaining prudent operation of the company and maintaining the healthy development of the capital market.Based on the sample data of Shanghai-Shenzhen A-share listed companies from 2007-2015,Throughing theoretical analysis and empirical research this paper found:(1)The disclosure of high-quality internal control information helps to reduce the risk of the enterprise.The quality of disclosure of the four elements: Internal environment,control activities,internal supervision,information and communication is the key factors in suppressing corporate risks.Risk assessment factors are negatively related to corporate risks,but this effect is not significant.(2)The good quality of internal control information disclosure will help improve the operating efficiency of the company.(3)The disclosure of internal control information can reduce the risk of the enterprise by increasing the operating efficiency.The operating efficiency plays a partial intermediary role between the two factors.(4)The disclosure of internal control information in non-state-owned enterprises has more pronounced inhibitory effect on corporate risk than in state-owned enterprises.(5)The effect of internal control information disclosure in areas with higher degree of marketization is more pronounced than that in areas with low degree of marketization.Finally,based on the empirical results of the previous article,we propose to improve the disclosure of internal control information and its regulatory system,strengthen the awareness of disclosure,and pay attention to improving operational efficiency.The establishment of internal control and its disclosure system must fully consider the nature of corporate property rights and the market environment.