The Study Of Influencing Factors Of Listed Companies Report On Internal Control Evaluation

With the development of socio-economic, internal control system is an importantpart of modern corporate governance. It is the internal control evaluation report thatlisted the designation and implementation of listed company. The disclosure ofinternal control information is good for increasing the transparency of capital marketinformation, promoting the efficient allocation of resources and a more rational flow,and establishing the improvement and sustainable development of capital markets.Ministry of Finance, the Commission, the Audit Commission, CBRC and CIRC haveformulated the <Practice Note1Of Internal Control–Organization> and Practice Note18,<The Evaluation Guidelines Of Internal Control> and <The Audit Guidelines Ofinternal Control> at April26,2010. These guidelines will be implemented sinceJanuary1,2011on the companies which are listed In domestic and overseas capitalmarkets, and on companies which are listed only on Shanghai Stock Exchange orShenzhen Stock Exchange from January1,2012.Others except main board will alsouse the Guidelines. Medium-sized enterprises without listed are also be encouraged.This is an improving of internal control system and driving research of internalcontrol disclosure as the center again.This paper reviews the research results on the disclosure of internal controlinformation of domestic and international aspects first, next it takes the theory ofagency theory, signaling theory and asymmetric information theory as basic theory tobuild the analytical framework of internal control evaluation report.Then with using the regression analysis of the data from2010, the paper focus onthe disparities of different market, the reason for the gap, and solution of thedifferences. The goal of the paper is to be analysis the releationship between internalcontrol affecting factors and internal control evaluation report.The empirical results shows: the quality and attitude of the disclosure of internalcontrol evaluation report are significant differences between different capita market,and companies that listed on both inside and outside capital market have higherquality and attitude than listed only on Shanghai Stock Exchange or Shenzhen StockExchange; the proportion of independent directors and actual control are relevant withevaluation report of internal control, and this recognizes the improvement of corporategovernance is good for the disclosure of information; the relationship between controlactivities, control monitoring and control of internal control evaluation reportdescribes the relevance between the elements of internal control and internal control evaluation report. The improvement of control activities and monitoring can helpimprove the disclosure of internal control evaluation report.Finally, according to the conclusions of this study, the paper proposes the relevantpolicy, and the adoption of the policy is good for increasing the transparency ofcapital market information, promoting the efficient allocation of resources and a morerational flow, and establishing the improvement and sustainable development ofcapital markets.