The Effects Of The Corporate Governance To The Internal Control Information Disclosure Of The Monopoly Industries

In recent years, the reform of monopoly industries has caused a wide social concern, in the aspectof renovating problems in monopoly industries, since internal control is a tool that can be used toprevent fraud for a company, it undoubtedly plays a significant role in the governing of variousproblems such as corruption. On the other hand, information disclosure also took people’s attention,especially since the outbreak of a series of fraudulent cases of property in the USA, informationdisclosure of internal control become more and more urgent Practice shows that effective informationdisclosure of an enterprise can enhance its internal control while the perfection of corporategovernance can improve the level of information disclosure. So this paper selected characteristics ofcorporate governance to learn their affections on information disclosure of internal control ofmonopoly industries.The paper selected the listed monopoly companies in Shanghai Stock Exchange and ShenzhenStock Exchange as the object of this study, collected the sample companies’ annual reports from theyear2007to2010and the total number of samples amounts for579.On the basic of these facts, thepaper analyzed the effect of corporate governance on the monopoly industries’ internal controlinformation disclosure. The paper conducted both descriptive statistical analysis and multiple linearregression, the multiple linear regression included Enter and Stepwise. The results of the descriptivestatistical analysis showed that the level of monopoly industries’ internal control informationdisclosure improved from the year2007to2010.From the results of the multiple linear regression, wecan see that among the various factors that will probably effect the internal control informationdisclosure of monopoly industries the shareholding ratio of the controlling shareholder and CEOduality present a negative correlation with the level of monopoly industries’ internal controlinformation disclosure, while the setting up of the Audit Committee and whether the accounting firmemployed by the company belonged to the big four international accounting firm have a positivecorrelation with the level of monopoly industries’ internal control information disclosure.