Study On Determinants Of Self-evaluation Report On Internal Control Of Listed Companies

Recently, Internal control has become a key measure for sustainable development in the enterprises. So the evaluation of internal control which is a optimization tool plays an increasingly important role. In June 28, 2008, Ministry of Finance, Securities and Futures Commission, the Audit Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission jointly promulgated the"Basic Standard for Enterprise Internal Control". The norms define the listed companies that carry out the standards have to establish the system of internal control self-evaluation, and disclose the annual self-evaluation report. Based on the guidelines of the new standards, the article studies on the concept of self-evaluation report on internal control, its significance, current situation and its determinants. The article puts forward the related measures mainly regarding the determinants in order to improve the current disclosure sitation of self-evaluation report on internal control of listed companies. Besides, It can provide references for the management practices of internal control self-evaluation.The article first makes a thorough review of research achievements at home and abroad, puts forward research ideas and the framework, and combs related concepts. By analyzing the cuurrent disclosure situation of the self-evaluation report on internal control in Chinese listed company, it provides the problems and its reasons. Then, the article discusses the influence factors. The hypotheses are proposed from four major aspects: company management structure, enterprise risk management, the reliability of financial report and features of the company. Through the methods of Logistic regressions, the paper collects data to test the hypotheses and draws the emprical conclusions from them. The conclusions include: the contype of the controlling shareholders, percentage of independent directors, the management risk, the finacial risk, the capacity of profitability and the company scale have significant correlation with the disclosure of Self-evaluation on Internal Control of Chinese listed companies; Concentration Ratio of Shares and the reliability of financial report haven't significant correlation with disclosure of Self-evaluation of Internal Control of listed companies. Finally, based on these studies, the article brings forward related measures from the macroanalysis and microanalysis, illustrates the localization in the research and the future study trends in order to improve the research framework.