The Research On The Quality Of Management Reporting On Internal Control And Its Influential Factor Of Chinese Listed Companies

On June28,2008, The ministry of finance, audit, The China banking regulatory commission, Securities regulatory commission, Insurance regulatory commission and other five departments jointly issued the "the basic norms of enterprise internal control". In2010five departments jointly issued the "the supporting guidance for the assessment of internal control". Since then, the disclosure of the self assessment of internal control is becoming compulsory. On August14,2012, the ministry of finance and securities regulatory commission jointly issued "the notice on the main board listed companies carrying out of the system of internal control classified and partially during2012", which clearly require that all the main board listed companies in our country should be embarked on internal control system construction. Investigations of the internal control reports changed from whether disclosure to disclosure level.To investigate exactly what factors influencing the listed company the quality of the disclosure of internal control self assessment report is the main content of this paper. To explore what factors affecting the quality of disclosure of the self-assessment report enterprise internal control. First of all, it should depend on the accurate measurement of the quality of the self-assessment report of internal disclosure. This paper combined the quality of internal control information disclosure related measurement method and accounting information quality requirements. The measurement is based on the two angles including the quality of disclosure of information and the disclosure quality, which need to choose corresponding typical metrics, such as the reliability, relevance, adequacy, comparability and clarity, timeliness, comprehensiveness and importance measuring. In order to avoid excessive subjective measure on index selection and calculation, this article combines the subjective assignment and objective weight to measure the disclosure quality of the self-assessment report of internal control of listed companies.In order to further research on what factors affect the disclosure quality of the self-assessment report of internal control, this article mainly aims at empirical research of the disclosure quality of the internal control self assessment report of the Shanghai a-share listed companies based on the performance before and after "the evaluation guidance of internal control of listed companies "from2010to2012". In order to analyze the factor affecting the quality of the self-assessment report of internal control disclosure comprehensively, the perspective of external supervision and internal management are choosed, which included selection of the fixed year of the disclosure, public areas, the firm’s reputation, whether domestic or foreign at the same time, the board of directors of the listed and aspects of corporating governance characteristics of equity factors such as nature, characteristics and operating conditions. To further standardize the management and internal control disclosure will provide opinions and suggestions.The study found that the overall disclosure quality of the self assessment report of the internal control of the Shanghai listed company from2010to2012is low, and the disclosure level is relatively large. But since the promulgation and implementation of "evaluation of internal control guidelines", the disclosure quality of internal control self assessment report has increased, and the difference in the levels of disclosure between enterprises are being narrowing. In term of the research factors influencing the quality of internal control self assessment report, this study found that the disclosure quality of the internal control self assessment report has significant positive correlation with the outside of the laws and regulations safeguard level, the region’s developed degree the company located, whether domestic or foreign listing at the same time, the debts supervision from the bank and internal governance of board size, the size of the board of supervisors, the controlling shareholders of state-owned, the proportion of institutional investors, the number four committee setted up. However, the disclosure quality of the internal control self assessment report has significant negative correlation with the fixed number of year of the listing and the company scale. The firm’s reputation, whether to have two part-time, public ownership, ten greatly shareholder’s shareholding between corporate profitability is not statistically significant. Research results indicate that the disclosure quality of internal control self assessment report is affected by the dual external supervision and internal governance in our country. Therefore, in order to standardize the implementation of the guidance and the perfection of internal control and management, the external supervision of listed companies and improvement of the internal governance of the company at the same time should be strengthen.