Research On Internal Control Disclosure Level And Enterprise Value In Listed Company

As the process of globalization accelerating， Chinese market economy is moreand more development. The number of listed companies is continuous expansion.The problem of listed companies internal regulatory is appearing. Financial fraudcases such as Enron and the world’s communications company occured in foreigncountries. In domestic there are also CNOOC huge losses event, Lam shares event,Guangxia event. Financial fraud cases exposed the internal control problem of thelisted enterprises. This dealt a heavy blow to the beliefs of the investors.It is moreand more important to supervise the listed company’s internal control. For this,America issued the SOX. It forced the listed enterprises that disclosure their internalcontrol information. And Chinese government also quickly issued "the basic internalcontrol norms for enterprises".This marked that enterprises internal control is on apath to government regulation.The paper is based on internal control information disclosure, we study on thelisted company’s internal control disclosure level influence on enterprise value, andto draw lessons from the information disclosure of international internal controlguidelines, and put forward some proposals about the internal control disclosure forlisted companies.First,we used listed enterprises’ disclosure information of internalcontrol as the research object. Bsed on studying the theory of internal controldisclosure, the evaluation of listed enterprises’ internal control disclosure is dividedinto three dimensions, including integrity, transparency and quality. In theevaluation of listed enterprises’ internal control disclosure integrity we establishedcomprehensive evaluation index, including16refining indicators. Secondly,westudy the enterprise value evaluation methods, we used principal componentanalysis method to evaluate listed companies’s value.We buid enterprise valuecomprehensive function. After these researches, we study that internal controlinformation disclosure level influence on enterprise value, put forward the internalcontrol disclosure level has positive effect on corporate value. This paper establishesthe multivariate linear regression model, using the stepwise regression analysismethod to test the relationship between internal control and enterprise value; Usingindustry variables as moderator variables, buid the industry adjustment effectregression model to test industry adjustment.The sample data is from the listed companies in2011. We used multivariatelinear regression model and carries on the empirical analysis concludes that the levelof listed enterprises’ internal control disclosure has a big positive correlation effecton corporate value;We used the industry adjustment effect regression model, and find the influence degree is different in different industries. Manufacturing industrythe highest influence, financial industry has the minimum influence, other industrieshave nomal influence. This suggest that the industry variable has regulatingeffect.According to the results of the empirical analysis, we give some suggestionsabout the disclosure of internal control for listed enterprises, and put forwardproposal to perfect the supervision system for government departments.