Research On The Influence Of Annual Report Inquiry On Enterprise Internal Control Quality

With the registration system reform landing,the concept of "deregulation,strengthening supervision" in our capital market has been effectively implemented.It is an innovative measure and an important way for exchanges to give full play to the functions of front-line regulators to supervise the quality of information disclosure of listed companies by issuing annual report inquiry letters.However,the improvement of information disclosure quality of listed companies cannot be separated from the strengthening of internal control and the improvement of internal control quality.As an important way of corporate external governance,whether the annual report inquiry can produce(and how to produce and what kind of)governance effect on the company’s internal control is an important theoretical and practical problem to investigate the policy effect of the implementation of the annual report inquiry letter system.This thesis used literature analysis,logical reasoning,empirical test and other research methods,in-depth and systematic research on the impact of annual report inquiry on the quality of internal control.Firstly,this thesis expounded the domestic and foreign research achievements and research ideas.Then introduced and defined the concepts of annual report inquiry,internal control and internal control quality,and sort out relevant theories;Then the mechanism of annual report inquiry affecting the quality of internal control of enterprises was analyzed and the research hypothesis of this thesis was put forward.Then,taking A-share companies listed on the main board of Shenzhen Stock Exchange as the object,the differential differential model was used to test the heterogeneity of the impact of the annual report inquiry on the quality of internal control of the company from the two perspectives of property rights attribute and ownership concentration difference,and the dynamic effect of the annual report inquiry was further studied.Finally,the thesis drew the conclusion and put forward the corresponding policy suggestions on how to improve the supervision system of annual report inquiry and improved the quality of internal control of listed companies.Through the above research,this thesis draws the following conclusions: First,the annual report inquiry system promotes the listed companies to improve their internal control quality;Second,in non-state-owned listed companies and companies with low concentration of equity,the annual report inquiry has a more significant effect on improving the quality of internal control.Third,the effect of annual report inquiry on corporate internal control governance is not sustainable;Fourth,in order to better play the governance effect of the annual report inquiry letter system on listed companies,the deterrence of the system should be further enhanced,and the information exposure and punishment of the misbehavior of enterprises and their executives should be increased.