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The Impact Factor And Market Reaction Of The Non-obligatory Disclosure Of Internal Control Auditing Information

Posted on:2012-04-28Degree:MasterType:Thesis
Country:ChinaCandidate:L ZhongFull Text:PDF
GTID:2219330371955662Subject:Accounting
Abstract/Summary:PDF Full Text Request
In 2006,Shenzhen Stock Exchange issued <The guide of internal control of listed company in Shenzhen Stock Exchange>,the guide said that listed company should disclose internal control self assessment report. In the year of 2010, treasury of finance and other 6 departments issued practice note which ruled that listed company should employ CPA to audit the internal control of this company and issue audit report. So between 2006 and 2009, internal control report was non-obligatory. When I read the report and discovered that some company revealed internal auditing report voluntarily. What kinds of company will be pleased to disclose the auditing report and how the market will react to this announcement, required us to do some study on it. This paper try to analyse empirically whether the auditing report should be disclosed obligatory.This paper used theoretical analysis and empirical analysis, and researched the market reaction of internal control auditing report form signaling theory. This paper researched the impact factor and market reaction of the non-obligatory disclosure of internal control information and spicilegium the A-share listed company in Shenzhen which disclose voluntary internal control information in 2007 to 2009 for empirical research of impact factor and market reaction. This paper uses Logistic model, nominates the disclosure or not as dependent variable; and ROE , asset-liability ratio, assets et al as explanation variables. Then it dose research on the impact factor of the reveal. The second step refers the multiple regression model, treat cumulative average abnormal return as dependent variable; future, assets as control variables, to investigate the market reaction. The results reveals that age of company, assets, audit opinion, prospect et al have a remarkable influence on voluntary disclosure; the reaction of the disclosure is notable.The main contribution of this research is that it not only does research on the impact factors of the non-obligatory disclosure of internal control information, and also the market reaction of non-obligatory disclosure. Then the verdict provides some suggestion to the policy coming soon. Wish this research could be beneficial both to the progress of internal control and capital market development.
Keywords/Search Tags:Internal Control, Audit Report, Market Reaction
PDF Full Text Request
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