Internal Control Disclosure Empirical Study Of Influencing Factors

In the recent years, with the occurrence of series of financial fraud cases, investors have come to realize that a company worth investing should have not only wonderful managerial performance and promising future, but also integral, reasonable and effective internal control system. The quality of the internal control information a company discloses reflects the fact whether they have established complete internal control system and their understanding of the information disclosing responsibility, and moreover it affects the judgment and decision of investors, debtors, and supervisors. In this dissertation, we applied the internal control information disclosure of public listed companies as our study objects, and empirically studied the factors that influence information disclosure. Through studying the public listed companies' information disclosing habits, disclosing behaviors, and disclosing contents, we try to aware the information suppliers of the importance of internal control information disclosing, help the information users to better understand the public listed companies' disclosing language, and meanwhile to provide the capital market policy makers with suggestions on how to improve the internal control information disclosing policies. This paper bears both theoretical and realistic meanings.We put forward our concept framework based on the status in quo and the study situation of internal control information disclosing through studying the evolution of both foreign and domestic disclosing policies, disclosure influencing factors, and measurement of disclosing amount. According to the two phases (IPO phase and annual report phase), and three carriers of information disclosure (self- assessment by management in prospectus, supervisor council report in annual report, and the significant proceedings required by Shanghai Stock Exchange in 2006), we further construct three to-be-tested models, establish corresponding internal control disclosing indexes, and test the models from three dimensions of corporate governance characteristics, medium agents characteristics, and corporate basic characteristics. The data was obtained from the capital market.With the hierarchical sampling techniques, we obtained 650 samples, and through variance analysis, relevant analysis, hierarchical regression analysis, and Logistics regression analysis in SPSS 15.0, we tested the three to-be-tested models. Our results state that factors, including proportion of independent directorate, corporate scale, reputation of stock undertakers, types of audit opinions, payoff capability, being punished for violation of laws, areas, and the issuing markets, evidently influence the internal control information disclosure level of public listed companies.To be specific, the contribution of this study is as following:1. By applying the capital market data and constructing the multi-factor regression model, we empirically studied the internal control information disclosing quality, as well as their influencing factors, during the two phases and within the three carriers.2. By content analysis, we took both the quality and quantity of disclosing information into consideration, constructed the three indexes of management self-assessment, annual report, and significant proceedings, and as a result, quantitatively studied the internal control information, which bears great scientific and realistic meanings.3. By designing three hierarchical factors of "corporate governance characteristics", "medium agent characteristics" and "corporate basic characteristics", we applied a more integrated and systematic approach to study the influencing factors. Besides, our hierarchical regression analysis has more explanative effects.4. Our study came to find that internal control information, as the specific linguistic information, has its own specialty, and this study enriches the study on volunteering information disclosure and ordinary information disclosure.5. While studying the "significant proceedings" required by Shanghai Stock Exchange in 2006 annual report, we combined the hierarchical regression analysis and Logistic regression analysis to explain the probability of occurrence of classified items disclosing, which is the further study of disclosing indexes, and bears useful meanings to future study.