Information Disclosure Of Internal Control Defects Of Market Effect Research

In the asymmetric information environment, information disclosure can eliminatethis situation to a certain extent, provides rich information content of defects of internalcontrol information for the information users to make decisions. However, the user howto obtain the information they need from the numerous information, disclosed howdisclosure, investors will react? This is this paper is to study and explore issues."Sarbanes-Oxley act" was promulgated, marking the internal control to begin anew journey. In the western developed countries, especially the United States, after20years of practice, both in theory and practice have formed a set of complete system.However, in our country the theory is not a set of effective system, lack of experience inpractice. So, need to constantly strive to improve. This paper uses the theory ofeconomics into the psychology theory as the foundation, in2011China Shanghai Ashares in listing Corporation’s annual report as a sample, carries on the statistical analysis,the evaluation report of internal control disclosure of information and whether the defectsof internal control level of detail, the disclosure of internal control is through the audit tothe stock price influence research. Finally, according to the research results, somesuggestions were put forward.The article consists of five parts. The first part, introduction; mainly includes theresearch background and significance, literature review, the article and research methods.The second part, effect of market mechanism and basic theo ry of internal controldisclosure defects are introduced; first, to define the internal control deficiencies, becausethe current understanding of the control of internal defects is shallow, so, this paper willintroduce in this paper that the defects; second, on the theory used in the paper: theprincipal-agent theory, the asymmetric information theory, signal transmission theory, theeffective market theory and psychology theory is introduced; finally, the analysis ofinternal control market reaction mechanism of the defects of disclosure. The third part isthe present situation analysis, the internal control information disclosure by statisticalanalysis in2011Chinese listing Corporation, to lay the foundation for the followinganalysis. The fourth part, empirical research; mainly includes the research hypothesis,research variables and sample selection, data sources, verify and to collect the sampledata, make a statistical test and analysis, make a reasonable explanation and the empiricalresults. The fifth part, the research conclusion and policy suggestion; the fourth partmainly summarizes the research conclusion, and puts forward several suggestions to perfect our country’s internal control information disclosure of listing Corporation.