Disclosure Of Internal Control Of Listed Companies In China Stock Price

In today's financial market, investor has fully recognized that a listed company, which has investment value, not only needs good management achievement and development foreground, but also needs good accounting message disclosure in internal control. The message which internal control discloses depends on the company whether has established integrated and effective internal control system. This article researches the relationship between accounting message disclosure in internal control and stock price, has theoretic and practical research significance.The article firstly reviews the literature of the relationship between accounting message disclosure in internal control and stock price, then obtains that the stock market in our country is the semi —strong form effective market; the message which has disclosed by the listed company has content, and the message has impact to the stock price and so on. On these bases, we put forward research hypothesis and confirm research model with application of the Cumulative Abnormal Return method.The article gains by analyzing accounting message disclosure in internal control: stock, bank, and insurance company disclosed internal control well, because of the need of supervision; but other listed companies disclosed internal control not very well, a majority of company chooses to disclose simply, had no essential content. The internal control message mostly disclosed by the board of supervisors, but it always disclosed formally. Our country' s listed company lack of drive that disclose internal control condition of their own accord to pass company' s quality signal to investor outside, a little of company voluntarily disclosed bad internal control, compared with years before, the listed company which disclosed bad internal control had increased in 2004. The disclosure in internal control' s proportion of the company that had issued qualified auditor opinion was basically equal as the company that had issued unqualified auditor opinion, which shows there is some relation between the accounting message disclosure in internal control and accounting report quality.From the Cumulative Abnormal Return method: stock market has reacted strongly to the good internal control message in a positive way; has shown no special negative reaction to the bad internal control message; has reacted strongly to the internal control message published initially in a negative way; and has reacted strongly to the internal control message not published consecutively in a negative way. By the research conclusion, the article sets up policy suggestion to supervisor, operator and investor.