An Empirical Study On Determinants Of Internal Control Information Disclosure Of Publicly Listed Companies Annual Reports

Based on the review of publicly listed companies'character, this article studies the information disclosure determinants of internal control in China. The information disclosure of internal control in publicly listed companies'annual reports is not only an illustration and guarantee of itself but also an important way that external information users can understand its economy condition. We mainly examine the situation of information disclosure of internal control in publicly listed companies'annual reports; what are the major factors that can affect it? And we also give some advices about how to improve the degree of information disclosure of internal control.Using empirical method with the annual public data of listed companies'2008 annual report in Shanghai and Shenzhen A shares(excluding insurance industry and issuing B/H shares at the same time), We find that: (1)In general, the publicly listed companies'degree of information disclosure of internal control is low in 2008. (2)Leverage, companies that receive qualified audit opinions, constitute internal audit department, possess higher percentage of accounting member in audit committee and proclaim its annual report earlier are positively associated with the degree of information disclosure of internal control (DIDIC) in annual reports; The more a company is listed in public, the more it discloses information of internal control in annual reports. (3)The control stockholder is state and listing in Shanghai or Shenzhen are insignificantly negatively associated with DIDIC; Special treatment (ST), the frequency of audit committee meeting in 2008 is insignificantly positively associated with DIDIC. (4)ROE, auditors, percents of shares hold by largest stockholder, the ratio of independence director, constituting audit committee are insignificantly positively associated with DIDIC; percents of shares hold by management, ownership convergence , general manager being board chairman at the same time are insignificantly negatively associated with DIDIC. In the end, this paper gives some advice to improve the degree of internal control disclosure of publicly listed companies'annual reports in China.