The Impact Of Company’s Ownership Structure On The Quality Of Internal Control Information Disclosure

In recent years, financial scandals are common in both domestic and foreign countries.Investors have realized that a company’s good operating performance and effectiveinternal control system are equally important.Western countries have put company’sinternal control system building and regulating the internal control information disclosureas a top priority to improve the capital market. Relevant regulatory authorities in Chinaalso issued a series of policies and regulations to regulate the construction of internalcontrol and information disclosure.However, we find that our internal control information disclosure situation is stillunsatisfactory, and this is difficult for investors to make right decisions.The poor qualityof information disclosure of internal control results from that some enterprises do notcomply the regulation.And it also lies in that the standards are not clear enough. This paperargues that, in addition to the foregoing reasons, the ownership structure is also related tothe situation of internal control information disclosure.This paper uses the285companies’s datas of the years of2010-2011to analyze theimpact of the ownership structure to the internal control information disclosure bycombining the normative and empirical methods.The paper discusses the basic theoriesrelated to internal control information disclosure and analizes the impact of the ownershipstructure to the internal control information disclosure.The empirical analysis explain thecorrelation between ownership structure and information disclosure of internal control ofChina’s listed companies. The results show that: the ownership concentration issignificantly negatively correlated with internal control information disclosure level,whileequity balance degree is significantly positively related to the internal control informationdisclosure level.The executives shareholders are not significant to internal controlinformation disclosure. Finally, we put forward policy recommendations to improve theequity of internal control information disclosure.