An Empirical Study Of The Quality Of Internal Control Information Disclosure

Since the "Enron" has been exposed, the United States have a burst of a series of international financial fraud scandals,such as global communications,world communications and other well-known large companies. Therefore investors realized that there is an investment value of the company not only have a good business performance and development prospects, but also must have a full, reasonable, effective internal control system. In China, the stock market also exists the same problem, from a few years ago Joan China source, Zhengbaiwen, Yinguangsha to China Aviation Oil huge losses in December 2004, are all listed companies revealed weaknesses in internal control and internal the lack of control over information disclosure. So,research on the disclosure of internal control information systems has much-needed practical significance:the protection of investors, investors can understand the company's internal control design is perfect, the'Executive is effective and thus to determine operating performance and forecasting company the future development potential; to improve the management of internal control awareness and to promote sound management of internal controls; for regulatory authorities to provide the necessary information basis; the general public also uses the operating results of individual subjects and financial and other relevant information for a variety of decision-making.In this paper, for the implementation of the "Internal Control Guidelines for Listed Companies," after the 2006 to 2008 in Shenzhen and Shanghai City, the research do an empirical study on the manufacturing of internal control information disclosure. The 15 factors are selected from basic information from the company, corporate governance, financial condition.This paper uses content analysis, from the public disclosure of the company's annual report, the report of the Supervisory Board and management statement, prospectus of the management of internal control self-assessment, a registered accountant's assessment of internal control report and its concluding observations, as well as listed companies published a separate internal control self-assessment report, the four cariers, to conduct a substantive in-depth content, through the construction of internal control information disclosure index, which was constructed within the control of information disclosure of listed companies quality model. By using SPSS 16.0, of 532 samples were collected, descriptive statistics, correlation analysis, variance analysis, multiple linear regression analysis, the model was examined. The empirical results show that:the number of board meetings, board of supervisors frequency of meetings, "four committee" number, Shenzhen or Shanghai stock market, financial leverage ratio, asset size, holding the nature of the manufacturing sector are significantly correlated with company's internal control quality of information disclosure.The main contribution of this article:1. By reference of the concept of the quality of financial information, the tentative definition of "internal control disclosure of information quality" is defined in. Although the precise degree and authority is limited, but the research has a certain role in paving the way and learn from.2. the current research on information disclosure of internal control are qualitative.Qualitative study are very few, and more use of descriptive statistics.this study built a multiple linear regression model,and do a empirical research on information disclosure of internal control quality and its influence factors.so it has a certain contribution for disclosure of internal control information in-depth empirical study3. the previous studies use "whether to disclose" to study the system described in this paper.This study use content analysis,and set up a new way to assess the quality of internal control information disclosure. 4. Five suggestion are made from seveal respects:the soon as possible to form quality standards for disclosure of internal controls; strengthening internal controls information disclosure regulation, improve the implementation of internal controls information disclosure ratings, etc.