The Research On The Impact Of Management Characteristics Of Enterprises On The Quality Of Internal Control Information Disclosure

Information is a key resource in the market, simultaneously is the source and basis of power, and the quality of it would affect the healthy development of the market and enterprises. The sustainable development of capital market were affected by continuously upgrading fraud scandals of corporate in the capital market, which resulting in widespread investor concerning over the quality of the financial report and of the information. Internal control is a core part in corporate governance, but its role is no play yet, that makes us aware of strengthening internal control construction and operation are the important measures to maintain the healthy development of the capital market. Practice has proved that, the quality of internal control information disclosure has become an important basis for the benefits of capital market related decision making, quality decides the enterprise to success or not.Through continuous practice of market supervision, internal control information disclosure of enterprise is also developed from voluntary to mandatory requirements. The government hopes to solve the problem of sustainable development of enterprises through the information quality improvement, however, the internal control information quality of our country’s capital market is not high on the whole, and there is a strong practical significance to explore the impact factors in internal control information disclosure. The impact on internal control information disclosure quality has internal and external factors, the existing research pays more attention to factors of matters while less research conclusions in men themselves. The core management that set strategy master the actual control of the enterprise, even in an efficient capital market, management can also have the advantage of internal information than external stakeholders. It is based on the above background, this paper carries on systematic theory discussion and empirical analysis on relationship between China’s enterprise management features and internal control information disclosure.Through the literature review, we have systematically learned many research conclusions on management and internal control information disclosure etc, understanding deficiencies of it. In the paper, after analyzing and discussing the related concept and the theory, we have established a theoretical framework for the paper, focusing on building a framework for relations between the management and internal control information disclosure, expanding the research on Information Governance. The framework has three main conclusions:(1) The status and responsibility of management on internal control information disclosures mainly manifests in:the internal control play a role of maintain the interests of various stakeholders, the management were to ensure the normal operation of the internal control implementation and its information disclosure goal. (2) The motivation of management on internal control disclosure are various, the motivation to fulfill the contract, the motivation to reduce the cost, and the motivation of adapting to the requirements of the external supervision. The internal control information disclosure is a means for the management to relief the external contract agency cost, in order to reduce the cost of the contract supervision caused by the asymmetry of information, there is stronger motivation for the management to disclose the internal control information. Internal control information disclosure quality can reduce the risk of investors’information, constraint management occupation and tunneling of major shareholders behavior, transmission positive signal of enterprise to the external, ultimately affect the cost of enterprise. In order to meet the requirements of the legal system of government regulators, the management will take the initiative to disclose, to realize the protection of the rights and interests of the enterprise stakeholders. (3) Selective disclosure and fair disclosure are ways of policy choice for the management to internal control information disclosure. Management is likely to weigh the interests of all parties to disclose in strategic choice. Under completing the premise of basic requirements of external supervision, the management discloses more beneficial information to their benefit, not or less to disclose harmful information to their own. Fair disclosure will be the final choice of the development in market information disclosure policy, fair internal controls information disclosure helps to maintain a fair market, confidence of market participants, and promote the healthy development of capital markets.Through the analysis of sample data of listed companies in china, we respectively make theoretical assumptions, which based on relationship of management background characteristics and behavior characteristics on the quality of internal control information disclosure, integrates research methods such as descriptive statistic, Pearson relativity analysis, multiple linear regression analysis etc., uses statistic instruments such as Excel and Eviews etc.,and draw conclusions by empirical analysis. The main conclusions of the studies are:(1) comparing to the elder management,the younger management has more beneficial to improve the quality of internal control information disclosure of enterprises; long term management have promotion effect on the quality of internal control information disclosure;enterprises of higher levels of education management, have higher quality on internal control information disclosure; a higher proportion of women in management, the quality of internal control information disclosure in their enterprises are not particularly improved; enterprise management with political background characteristics have no influence on the quality of internal control information disclosure. (2) the influence that management behavior characteristics to the quality of internal control information disclosure is mainly reflected in:there is a certain matching relationship between management compensation and the quality of internal control information disclosure; the appropriate management stock position play a promoting role in enhancing the quality of internal control information disclosure; too much management Duty Consumption do not make for rising the quality of internal control information disclosure.According to the above conclusions, related proposals were put forward in the end, regulating the rights and responsibilities of management on the internal control information disclosure; improving the quality construction and behavior mechanism of rewards and punishments; and promoting the construction of the internal control environment and the relevant laws. In conclusion, I hope to improve the quality of our internal control information disclosure from the point of management.