Research Of The Relations Between Listed Company's Inte-rnal Control Information Disclosure And Earnings Quality

Recently, the number of listed companies in China have increased year by year, whose great influence on the social economical development goes deeply. Meanwhile, the booming and steady of the capital market get touch with the benefits of institution and individual investors directly, even the whole society involved. The incidences of law and regulations broken by listed companies are again, again and again. The public always have a sigh at the ebb of those magnitude companies; however, they do not realize that the failure of listed companies is related strongly with its internal control. Furthermore, the great number of individual investors vulnerable to the misfortunes.The design and the execution of the internal control have the strong relation with the quality of profits. At present, the individual investors can't enough recognized the quality of profits, and make wrong judgments, which lead to the loss in the investment behaviors. This article standing at the individual investors angle, attempt to judge the level of internal control through the analysis of information disclosure of listed companies, finally, recognize the quality of profits.This article is divided into five sections to make specific analysis and research, the main content and interrelationships is following:The Chapter one is an introduction. Proposed thesis research background, meanings and purpose, domestic and foreign research. Finally, put forward the innovation of this paper and the deficiencies.The Chapter Two introduce the theory basis of internal control information disclosure and the quality of profits, especially the disclosure and measure.The Chapter Three analyze the above problems in the listed companies theoretically, including the laws and regulations, the status of information disclosure in the listed companies and the relationship between internal control and the quality of profits.The Chapter Four do the empirical study between the information disclosure and the quality of profit, through the data analysis.The Chapter Five describe the positive correlation of the result of empirical study in the research and put forward policy advices in the practice.The significance of this text is following:First, the theoretic meaning is embodying the theory of this ground, for the domestic research is concentrate on the status in quo and correlations, rarely on the relationship. And this research remedies the deficits. Second, the practice meaning is proved the value of disclosure of internal control, offering the sound ground of national compulsory disclosure, which could promote individual investors focus on the information disclosure of internal control and make a relevant judgment by this way.Last, compared with the direct judge on the quality of profits, it is easily to arrive at the conclusion through internal control information indirectly. In the other word, this method offers an easy and effective way to the individual investors to help them make the right investment decisions.