Research On Agriculture Public Listed Company’s Internal Control Information Disclosure Quality

British famous historian Arnold Toynbee had a famous saying: From a county to anation，its decline is often started from the internal forces，external forces are only the finalblow before its decline. So is the rise and fall of an enterprise. The internal control system isthe inevitable outcome of the modern enterprise management. The external managementenvironment is the external cause during the development of enterprises. Businessmanagement, including internal control system, is the internal cause during the developmentof enterprises and internal factors play a decisive role. In order to further improve the internalcontrol system of companies that are listed, countries have enacted various laws andregulations. Such as, on July30,2002, the United States announced the fa mous"Sarbanes-Oxley Act ", Shanghai and Shenzhen stock exchange in2006issued Guidelinesfor internal control of listing Corporation respectively. In2008, the ministry of finance andother four ministries Issued the "Basic norms of internal control" together, in2010theyissued the Supporting internal l control guidelines together. Many of them are on internalcontrol information disclosure（Abbreviation：ICID） of listed companies. ICID draws muchattention from academia and the broad masses of investors after financial informationdisclosure.This article explores the overall situation of agriculture public listed company’s ICID andfound problems, and further gets an analysis of factors influencing the quality of ICID. Toachieve the purpose, the author reviewed the literature, relevant laws and regulations aboutICID in our country. The author, keeping in touch with practice, designs a set of internalcontrol information disclosure quality（Abbreviation：ICIDQ） evaluation index system. Inthis system, the author make ICIDQ specific and quantified from whether establish a soundinternal controls, whether internal control is effectively implemented ect.10areas. Then,check the41agricultural listed companies’2010-2013annual reports, internal controlself-assessment reports, internal control attestation report, internal verification opinion andother information, analysis of statistics of each agricultural listed companies for each year ofICIDQ scores. Score results will be served as dependent variable values in empirical study.During the statistics of ICIDQ, the author found that the main problems of agriculture publiclisted company’s ICID are as follows: Position of ICID is not uniform; High self assessmentopinions on internal control; ICID overall level of detail is not enough. I think we canproceed from the following aspects in order to increase the quality of ICID of agriculturepublic listed company: a unified position of the ICID; The relevant state department studyand issued more detailed, uniform Internal control evaluation standard; Listed companiesshall fill in the content of ICID.In the last part of this article, the author use agriculture public listed company’s ICIDQ asthe dependent variable, the profitability of the Company (after deducting non-recurring gainsand interest margin), the company’s financial leverage (gearing ratio at the end), the nature oflargest shareholder, ownership concentration (top three shareholding ratio), managerialownership ratio, proportion of independent directors, If chairman concurrently hold theposition of general manager, whether it be special treatment(ST), place of listing, the auditagency authority, The type of audit opinion and company size as explanatory variablesin multivariate linear regression. In order to compare the factors that affect agriculture public listed company’s ICIDQ of2012and2010-2012, I use41agricultural listed companies’data in2012to made a multivariate linear regression, at same time, I use41agricultural listedcompanies’ data in2010-2012(sample size was expanded to123) to made a multivariatelinear regression too. The empirical results of2012show that: profitability of thecompany, the nature of the largest shareholder, managerial ownership ratio and place oflisting have an significant effect on agriculture public listed company’s ICIDQ at the5%significance level, while, audit agency authority has an significant effect on agriculturepublic listed company’s ICIDQ at the10%significance level. The empirical results of2010-2012show that: the nature of largest shareholder, If chairman concurrently hold theposition of general manager and place of listing have an significant effect on agriculturepublic listed company’s ICIDQ at the5%significance level, while, ownership concentrationand managerial ownership ratio have an significant effect on agriculture public listedcompany’s ICIDQ at the10%significance level.