An Empirical Research On Correlation Between Internal Control Self-assessment And Stock Price In China

U.S. investors questioned on internal control of listed U.S after Enron and World Com scandal broke out in2001. Urgently, a listed Accounting Oversight Board was established by the Sarbanes-Oxley Act. The enactment of the Sarbanes-Oxley Act made the US-listed company’s internal control information disclosure into the era of mandatory disclosure. At the same time, Enron has also sparked internal control of listed companies in the world-wide attention, the United Kingdom, the Netherlands, Europe, Hong Kong and other countries and regions corresponding to the introduction of the internal control provisions of the relevant laws and norms, the establishment of a system of internal controls.Under such circumstance that strengthen internal control study in countries around the world and continue to standardize and improve its internal control regulations, China’s securities regulatory authorities have also introduced the institutional arrangements of the Listed Companies’internal control disclosure of information behavior."Norms"(June28,2008) and "guidelines"(April26,2010) promulgated disclosure requirements for internal control disclosure information indicates that China has turned from a semi-mandatory disclosure stage to the stage of mandatory disclosure.Internal control is an important factor to affect company operations and reliability of accounting information, while the company itself and the regulatory perspective, and is of great significance to provide valuable information for investors. This paper uses the empirical research and the normative research methods to study deeply on how the internal control disclosure affects the stock price of China’s Growth Enterprise Market. That is to say, to test and verify that the relationship of the quality of internal control disclosure and the stock price is positive.There are six parts: Part Ⅰ:Introduction. This part describes the background and significance of this study, research contents, methods and research framework. At the same time. this article focused on the study of the actual situation on the innovation and deficiencies of the text.Part Ⅱ:literature review and internal control information disclosure system evolution. This section reviews the disclosure of relevant literature, while at home and abroad on the internal control information to sort out our internal control information disclosure system evolution and comments.Part Ⅲ:theoretical analysis and assumptions. This section includes two aspects. First of all, internal control self-evaluation reports the information content of the theory to analyze the Origin. On the other hand, this section makes assumptions through theoretical analysis.Part Ⅳ:study design. This part is the core of this article. This section describes the choice of sample sources and data, formulas and procedures. Using the event study, this section, combined with the actual situation of China’s listed companies, research and design of internal control self-assessment report information index. internal control self-assessment reports and support reporting aspects of the design rating systems and standards, to quantify the research variables. In order to verify the market, this paper makes a reflection of internal control self-assessment report information and makes a establishment of a multiple regression model.Part Ⅴ:The empirical results. This part of the event study methodology and multiple regression analysis of the empirical results, including analysis and elaboration of the studies assume that the empirical results of their empirical results.Part Ⅵ:The policies and proposals:mainly based on the above study, the policies and proposals of the relevant system of internal control information disclosure.