Research On The Correlation Between The Disclosure Of Internal Control Evaluation Report And The Characteristics Of Listed Companies

The early 21st century, The United States have erupted a series of accounting scandal,such as enron corp., WorldCom Inc. and so on, and had a tremendous impact on the USA stock markets. As a result, the "Sarbanes-Oxley Act" was enacted, and all sectors of society paid more attention on the internal control gradually. The academic study of internal control is also increasingly heating up. In recent years, China also appeared a series of accounting scandal, such as QiongMinYuan, ZhengBaiWen, YinGuangXia,and so on. In the end, it caused the social public to pay more attention on the company's internal control and accounting information disclosure quality. In 2008, the Ministry of Finance,China's Securities Regulatory Commission,Audit Administration,China Banking Regulatory Commission(CBRC),China Insurance Regulatory Commission jointly issued "Enterprise Internal Control Basic Norms". It stipulated that the act would be fully implemented in Januarylst,2010 in listed companies. This marked the start of China's version of the "Sarbanes-Oxley Act". On April 26th,2010, the five department jointly issued "Enterprise Internal Control Supporting Guidelines". It includes 18 items of "Enterprise Internal Control Application Guidelines","Enterprise Internal Control Evaluation Guidelines" and " Enterprise Internal Control Audit Guidelines". It stipulated that these guidelines would be implemented in January 1st,2011 in inside and abroad companies, and would be implemented in January 1st,2012 in Motherboard listed companies of Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). The norms and guidelines mark the internal control standard system suitable for our enterprises has been basically completed, and also provide a broader space for internal control research.With the methods of normative and empirical study, the study of internal control reports in 2009 of SSE and SZSE explained the correlation between the internal control evaluation report and the listed company characteristics. The results are:there is significant positive correlation between the disclosure of internal control evaluation report and the listed company's scale, whether to establish internal audit department; there is significant negative correlation between the report and debt financing level and time to market; there isn't significant correlation between the report and the business complexity, social reputation and the quality of financial reporting. According to the conclusions, provide the related suggestion for the disclosure of internal control evaluation report from policy makers, listed companies and the accountants separately, and provide the empirical evidence for our country's internal control system.