Research On Disclosure Of Internal Control Of Chinese Listed Companies

Internal control disclosure is drawing more and more attention home and abroad in recent years. After several years of internal control's voluntary disclosure, USA has issued rules to require public companies to implement mandatory disclosure. In the year of 2000, China Securities Regulatory Commission (CSRC) issued rules to demand listed commercial banks, stockjobbers, insurance agents to disclose their internal control compulsorily. CSRC also has issued relevant rules on other listed companies. In China, however, the internal control disclosing practice of listed company is immature, and the study on internal control disclosure is on the initial stage. Based on the above considerations, this article analyses the current situation of listed companies' disclosure of internal control in our country, and tries to bring forward some suggestions on the problems.First, this dissertation theoretically analyzes the disclosure of internal control, then introduces the regulations of CSRC. Based on the annual reports of five listed commercial banks, two stockjobbers and five hundred of other listed companies from Shanghai Stock Exchange and Shenzhen Stock Exchange, this article analyzes the disclosing situation on internal control by the descriptive analysis and empirical study, and puts forward the existing problems, such as ineffective execution of regulations, insufficient motivation of voluntary disclosure and lack of correct recognization about internal control, etc. and then analyses the causes of these problems from the aspects of supply & demand and regulations. Finally, the paper points out the following suggestions from involved parties of internal control and internal control disclosure norms: make great efforts to cultivate institutional investors, improve the governance structure of listed companies, strengthen the follow-up education of certified public accountants and actively improve the relevant legal norms.