Institutional Research On Information Disclosure Of Internal Control For China's Listed Companies

Based on the view of corporate governance of China's listed companies,this dissertation carried out studying their information disclosure issues of internal control. The high level and transparent disclosure of information can reduce the degree of asymmetric information and lower the costs of transaction in the capital market. Thereby it will enhance the efficiency of capital markets, improve the allocation of resources and promote economic growth. Investors are both major participator in the securities market, but also the main demanders of information such as internal control. Information disclosure of internal control in China's listed companies is the important way that investors can understand the the economy status of the listed company. What about the situation of information disclosure of internal control in the listed company—as the main body to disclose? What are the major factors that can affect the information disclosure of internal control? Some issues are paied attentions to by investors, supervisors and researchers such as how to improve information transparency of the internal control etc.In this paper, with the uses of annual public data of China's listed companies from 2006 to 2007 in Shanghai and Shenzhen A shares (excluding some data when necessary),based on the current status investigation of information disclosure of internal control and discussion on the background, factors and measuring degree of of information disclosure of internal control system and so on, this dissertation devised corresponding indicators system of internal control disclosue in accordance with the internal governance structure and external governance mechanisms. Combined with ownership structure, constitute of the board of directors and other characteristics of internal governance, it tried firstly to use some features of external governance such as "the legal protection of investors", "Stock Exchange governance mechanism" and " market competitiveness of products " to build three lays "whether or not to disclosure", "how about particular disclosure" and "what extent of disclosure", in which corporate governance can affect internal control information. An Empirical Study in the impact on information disclosure of internal control by corporate governance of China's listed companies is carried out in this dissertation systematically.Results show that "the legal protection of investors", "Stock Exchange governance mechanism", "reputation mechanism" and other outside variables on the characteristics of the governance mechanisms influence the information disclosure of internal control significantly. It is therefore proposed: to strengthen information disclosure's system condition of internal control, to improve information disclosure's law arrangement of internal control by the form of a new law or to be added to the existing laws and regulations such as "Company Law", "Securities Law", "Accounting Law" and other relevant sections, to promulgate and practise a unified "Chinese internal control guidelines for listed companies" by the the China Securities Regulatory Commission to put an end to the different internal control structure varying levels of information disclosure caused by the different "Stock Exchange governance mechanism", to provide the new thinking of the disclosure of internal controls that is "mandatory disclosure is the base, and voluntary disclosure is the supplement".The conclusions of this dissertation provide the initial evidence for China's listed companies to improve theory level of information disclosure of internal control, to enhance the protection of the interests of small and medium investors, to enhance the supervision on information disclosure of internal control of China's listed companies by the Securities and Exchange Commission.