Empirical Research On Internal Control And The Value Relevance Of Accounting Information

In the early21st century, a series of giant international companies due to financial scandal led to the event of bankruptcy caused by the concern and attention of the community, the various stakeholders are increasingly concerned about the quality of accounting information. In China, some large enterprises serious loss events, but also to China’s listed companies is increasing emphasis on the construction and implementation of the internal control system. One of the main goal of2008to2010, the Government has successively promulgated a series of internal control regulations, the release of these specifications is to ensure that listed companies provide investors with true and reliable, and value relevance of accounting information, the ultimate goal is to protect investors’ interests. Although the quality of accounting information is subject to many factors, but it is generally believed that the existence of internal control failure or internal control deficiencies lead to low quality of accounting information. So, the effectiveness of the implementation of internal control will affect the value relevance of accounting information, domestic scholars, empirical research on this issue has very little, therefore, this article from investors concerned about the accounting information has value relevance of departure to explore the internal control and value the relationship. It is Effective for enterprises to establish internal control.The first chapter is, an introduction to the introduction of the background and significance of this paper reviews the research status reviewed, described the research methods and content of this article.The second chapter describes the basic theory of internal control:the concept and objectives of internal control, internal control framework, the theoretical basis of the internal control, internal control evaluation.In the third chapter, I first introduced of the accounting value of information related to the meaning of and empirical studies", followed by analysis of the internal control and accounting information value relevant contact, and put forward the hypothesis.In the fourth chapter, I selected the Shanghai and Shenzhen A-share listed companies in2009and2010data for statistical analysis, the conclusion is:when the company internal control deficiencies exist, its net profit value lower than the non-existent company of the internal control deficiencies; internal control defects, the book value and stock price higher than the net profit value of the correlation; internal control defects, the overall explanatory power of net income and book value of the stock price lower than the non-existent internal controls defects in the company.Finally, in accordance with the conclusions of the empirical relevant on internal control, mainly from the following improvement measures:the establishment of a risk assessment system strengthens supervision and the internal control-audit role in the establishment of internal control self-assessment system, to strengthen the external oversight, and strengthen information exchange and communication.