Agency Conflict, Signal Transmission And Voluntary Internal Control Attestation Reporting

In2001, American Enron, WorldCom financial fraud scandal erupted, causing many listed companies go bankrupt. In the summer of2002, the United States Congress issued "the Sarbanes-Oxley legislation ", namely, SOX. The bill to the public company corporate governance and financial report made specific details of the regulation, this company’s internal control quality requirements issued by self evaluation report, hired auditors on its audit. Internal control began to get the attention of the world. In recent years, our country also have happened financial fraud incidents, such as Ying Guan Xia. Lack of internal control was one of the important reasons. Therefore, a series of internal control auditing and disclosure of relevant standards and work notice were issued by the CSRC, Treasury Department, Shenzhen Stock Exchange and Shanghai Stock Exchange. In the past, our country forced financial industry, the IPO enterprise to make internal control self-evaluation report and attestation report disclosure public, and suggest the appropriate listed companies issue internal control self-evaluation reports and attestation reports. Now it force all listed companies disclosed internal control self-evaluation reports, and suggest conditional ones disclose attestation reports (the IPO, financial industry company except).Currently, there are a lot of domestic and foreign scholars from theory and practice inspection, analyzed the internal control information disclosure and internal control self-evaluation report motivation, reliability and necessity. And Chinese empirical studies of the attestation report voluntary disclosure motivations was not more. This thesis based on the agency conflict and signal transfer theory, through an empirical analysis of the2009,2010Shanghai non-financial industry A shares listed company data puts forward the motivation of disclosure of the listed company internal control attestation reports. Found in the companies, agency conflicts not significantly. The financing needs and the high quality of internal control promote the company to disclose the internal control attestation report.This paper has certain theoretical meaning and practical meaning. Agency problems rise in enterprise ownership and the right of management separation. This thesis studies agency conflicts between big shareholders and small shareholders influence of voluntary disclosure internal control attestation reports. Based on the signal transmission theory, presumably with financing needs, internal control of high quality to the company will be more willing to disclose the internal control attestation report. Differences between any other companies make investors have better evaluation of company risk management and coping. As investors reduce the information asymmetry and risk premium compensation, the company reduces the financing costs. So the stock price rises. This research helps the related departments to set policy about the listed company internal control attestation report disclosure, and then design perfect internal control attestation report system. Help investors to make accurate beneficial project decisions according to the information. Help the company meet the financing goal. Help certified public accountants to issue the legitimate internal control attestation report and reduce the lawsuit risk.Existing literature may be just unilateral signals transmission or agency conflict theory with internal control attestation report voluntary disclosure. This paper discussed two aspects constructing model. Although lessons from the foreign scholars with multivariable internal control measure method of quality, it based on the background of our country system sets up to measure the quality of internal control standards. The United States mandatory disclosure internal control attestation report is different from our country in a voluntary stage. Different background and little existing reference literature of this thesis have made it creative.According to the research target, this thesis can be divided into five parts: Firstly, it gives an introduction of the research background, theoretical and practical significance, the novelty and the frame structure and the main content.Secondly, it reviews literature at home and abroad. They were about internal control information disclosure and the researchment of internal control attestation reports. The internal control systems to establish and develop at home and abroad were stated.Thirdly, it states the introduction and analysis of the agency conflict and signal transmission, internal control attestation reports disclosure motivation and related theory, combined with the purpose of this thesis were put forward.Fourthly, it states empirical analysis. It includes data sources and the process of sample selection, quality of internal control, designing variables and constructing model, making use of SPSS statistical tools to verify the supposition and do robustness analysis.At last, it points out conclusion, suggestions, and limitations. According to the results of the analysis, suggestions of internal control attestation reports disclosure were put forward to the company, government departments, CPA. This thesis puts forward the study limitations.