Research On The Impact Of Registration System On The Quality Of Enterprise Internal Control ——Based On The Prospectus Of Manareco New Materials And Iray Technology

In 2019,the Science and Technology Innovation Board was established and the registration system was piloted.The "Securities Law",which was officially implemented in March 2020,stipulated that the issuance of new shares should implement a registration system.The Beijing Stock Exchange was established in November 2021,which indicates that my country’s capital market is gradually promoting securities.The issuance system has changed from "Approval system" to "Registration system".The essence of the approval system lies in the substantive management of securities management agencies.The issuance of securities shall meet the substantive conditions of issuance while the real situation is fully disclosed,and the regulatory agency is responsible for evaluating the issuance value.The important feature of the registration system is that the securities issuance review agency only reviews the authenticity and integrity of the issuer’s information,and the critical of the review is the issuer’s corporate governance,sustainability,information disclosure and value judgments.Compared with the approval system,the registration system will implement a stricter information disclosure system,requiring companies that issue securities to take the prospectus as the core and fully disclose information such as governance structure,sustainable management capabilities,corporate risks and their system construction,to facilitate investment making value judgments and investment decisions.Institutional changes will affect organizational behavior.Under the registration system,in order to meet the above disclosure requirements and attract more investors’ attention,companies that issue securities are bound to adjust and change their company’s system construction,management activities and business behavior.The internal control system is the guarantee for the normal operation of an enterprise and the realization of business objectives,involving all aspects of enterprise operation and management,and is the basis for the above-mentioned changes.Therefore,it is an important issue to discuss the impact of the registration system on the quality of enterprise internal control.This paper uses the case analysis method to select Xi’an Manareco New Materials and Shanghai i Ray Technology as the objects.The information in the prospectus of the two companies compares the differences in the control environment,risk assessment,control activities,information and communication,and supervision of the two companies under the registration system and under the approval system and analyzes the registration system’s impact on the quality of internal control.In the case analysis,the basic situation of Manareco New Materials and i Ray Technology is firstly introduced,and the second is to analyze the changes in the internal control of the two companies before and after the implementation of the registration system.It is found that the governance structure,business status disclosure,financial information disclosure and There are significant differences in risk assessment and other aspects,and then summarize the similarities and differences in the impact of the registration system on the internal control of the two companies,and then identify the path that the registration system affects the company’s internal control,and finally draw research conclusions and put forward policy recommendations.The study found that the main impact of the registration system on internal control is reflected in the governance structure,information disclosure and risk assessment in the control environment.Internal control of quality.Specifically,firstly,under the registration system,enterprises will further improve the ownership structure and corporate governance behavior to make it more in line with the requirements of the company’s listing and development,to achieve a good internal control environment.Secondly,the registration system is centered on disclosure,and the issuance process and system itself require a higher degree of information disclosure,prompting enterprises to establish a sound information disclosure system and improve the quality of information disclosure.At the same time,true and complete information disclosure is helpful for information communication from top to bottom,reducing information asymmetry,improving the effectiveness of internal supervision,helping the operation of internal control,and reducing the existence of internal control defects.Thirdly,in order to meet the requirements of the registration system for detailed risk information disclosure,enterprises pay more attention to identifying risks and responding to risks,improving the quality of risk assessment,realizing effective risk control,and thus improving the quality of internal control.In theory,the research of the paper enriches the literature on the differences between the registration system and the approval system,increases the research on the consequences of the implementation of the registration system,and expands the research on the factors affecting the quality of internal control.In a practical sense,the research conclusions of this paper provide empirical evidence for the regulatory agencies to further promote and deepen the reform of the registration system,and also provide guidance for the construction of the internal control system of quasi-listed companies.