Corporate Governance Structure Of The Internal Control Disclosure Of Information

Since entering the 21st century, frequent financial fraud cases at home and abroad have made regulators and investors aware of the importance of the disclosure of internal control in the listed company gradually. However, the actual state of the disclosure of internal control is not optimistic in listed companies for a long time.The overall disclosure is at a low level. Laws and regulations of mandatory disclosure are not implemented effectively. Voluntary disclosure of information is not motivated. Accounting firm's audit report on internal control is lack of uniform criteria for implementation. Domestic and international studies have confirmed that the corporate governance structure is the endogenous restraint mechanism for information disclosure. In regard to this, from the perspective of corporate governance structure,this article explores the impact mechanism on the disclosure of internal control by characteristics of corporate governance structure.This not only contributes to supplement the theoretical framework of the relationship between corporate governance structure and information disclosure, but also can provide little help for enterprises to find out the effective measures on improving the disclosure of internal control from the roots.Based on the Principal-agent theory and the System theory, this paper explored the interaction relationship between corporate governance structure and internal control information disclosure. Drawing on research results in the field of the influence of information disclosure by corporate governance structure at home and abroad, this paper selected characteristic variables influencing the management efficiency of corporate governance structure, constructed a theoretical framework of the impact on internal control information disclosure by corporate governance structure and put forward research hypothesizes. In the empirical analysis, this paper established internal control disclosure index to measure the disclosure level of internal control by content analysis, took internal control information and data on corporate governance structure included in the 2008 annual report of listed companies issuing A shares in Shanghai Stock Exchange as study objects and selected 166 companies as sample through stratified sampling by industry, adopted descriptive statistics, simple correlation analysis and multiple regression analysis, verified influencing mechanisms on the disclosure of internal control by characteristics of corporate governance structure and the corporate governance structure's explanatory power to the disclosure level of internal control.The results indicate that corporate governance structure can explain the disclosure level of internal control significantly. The proportion of state shares, the concentration ratio of shares, the proportion of independent directors, the setting of Au dit Committee and the proportion of professional supervisors can affect the disclosure of internal control significantly. However, the size of board of directors, the leadership structure and the size of the board of supervisors don't have significant correlations with the disclosure level of internal control.Based on study conclusions, this paper put forward suggestion to improve the disclosure of internal control through promoting corporate governance structure,strengthening government regulation and external monitoring.