Study On Relationship Between Attestation Information Disclosure Of Internal Control And Company Performance

Internal control is an important guarantee for achieving business objectives, information disclosure is the significant institutional foundation for investors to access to information and use it for decision-making. Therefore, the theory and practice of community paid more and more attention to information disclosure of internal control. In recent years, with the continuous improvement of China's construction of internal control system, the information disclosure of internal control toward standardization. Since2008, a series of internal control regulations has promulgated; Shanghai Stock Exchange and Shenzhen Stock Exchange have also give encourage to listed companies. Many listed companies have been revealed the internal control attestation report gradually, and the credibility and reliability of the information has been greatly enhanced.This paper takes this as an opportunity, trying to explain the relationship between internal control attestation report and the performance of the company by studing the situation of the internal control information disclosure in Shenzhen Stock Exchange in2009and2010. It has significant and practical value to consummate the formulation of relevantpolicies, regulate the information disclosure of internal control, strengthen capitalmarket supervision, and protect the interests of outside investors.Firstly, on the basis of previous studies, according to the principal-agent theory and asymmetric information theory, this paper analysis the relationship between internal control attestation report and the performance of the company, and put forward the hypothesis. Secondly, accouding to the situation of the internal control information disclosure and taking the listed companies in Shenzhen Stock Exchange in2009as samples, the paper make an empirical test of the assumption by using descriptive statistics and regression analysis. The results show that companies published internal control attestation reports have a better performance than those wihich doesn't publishe internal control attestation report. It means that there is a significant positive correlation between the internal control attestation report and company performance.