The Research Of The Effect Of Corporate Governance Structure On Internal Control Disclosure

After promulgating the“Basic Norms of Enterprise Internal Control”in 2008,theinvestors and the regulatory agencies focus on the importance of internal control onceagain.When evaluating the enterprise,the external stakeholders need to get enoughinformation provided by enterprises to help them make decisions.Then,the informationabout internal control becomes one of the most important information.But,the listeddon’t get enough motivation to disclose the information on internal control,which isaffected by various factors.In these factors,corporate governance structure is importantone,which exists as the foundation of the enterprise to establish and operation.In order to know the effect of corporate governance structure on internal controlinformation disclosure,this paper has chosen 402 listed companies as sample from themain board of the shenzhen stock exchange market that issue Ashares,not includinggem,small and medium plate market,in which has eliminated the banks,insurancecompanies and other financial enterprises and ST enterprises.This research has beendone with data of 2010.Based on the theoretical analysis,the paper selected 8representative variables used to measure corporate governance structure,namely,equityconcentration, the stock proportion of state,the stock proportion held by management,the size of the board,the proportion of the independent directors,whether the chairmanis also the general manager,the scale of supervisors,the stock proportion held bysupervisors, two control variables,namely,company size and net assets yield.Besides,italso built the internal control information disclosure index (ICDI) as the explainedvariables for research.In the respect of research tools,this paper mainly adopted SPSSsoftware and EXCEL to process data.In the research method,this paper used principalcomponent analysis on the 10 explain variables at first with the purpose of dimensionreduction,which extracted five main components.And then it used the linearmultivariate regression analysis to find the relationship between the internal controlinformation disclosure index and the five main components in order to find the effectof corporate governance structure on the internal control disclosure.At the end,the study results showed that the corporate governance structureinfluenced the quality of internal control information disclosure:equity concentration,the stock proportion of state,the size of the board and whether the chairman is also thegeneral manager were negetively related witn internal control disclosure;the stockproportion held by management, the proportion of the independent directors,the scale of supervisors,company size and net assets yield were positively related with internalcontrol disclosure;the stock proportion held by supervisors was not related withinternal control disclosure significantly.According to the results of analysis,combinedwith the selected explanatory variables,this study put forward some suggestions fromfour aspects of corporate governance structure in order to improve the quality ofinternal control disclosure:optimizing the ownership structure,constructing reasonableboard structure,strengthening supervision of supervisors and perfecting managementincentive mechanism.All of these were expected to have a certain reference value toimprove the internal control information disclosure level in the practice activities.