The Economic Consequences Of Internal Control Information Disclosure:Theory And Evidence

June2008introduced the "basic norms of internal control" requires listed companies to the effectiveness of internal control self-assessment, and forensic certified public accountant issued by the internal control self-assessment report. Since then, China’s listed companies, mandatory disclosure of internal control officially kicked off. Although a variety of reasons,"supporting internal control guidelines" and other related systems has been repeatedly delayed, however, there are still a number of listed companies in Shanghai and Shenzhen each different motivations for voluntary disclosure of internal control self-assessment report. Internal control disclosure of information will lead to any kind of economic consequences? Whether the internal control disclosure of listed companies can contribute to raising the level of internal control? Earnings quality and cost of equity capital because of the internal control disclosure of information and what impact? Whether the internal control disclosure of information to improve the debt contract and the effectiveness of the audit contract? These problems are causing more and more regulators, investors and business managers and other relevant parties concerned. Internal control for economic consequences of disclosure of research, most of the existing literature focus only on the internal control disclosure of certain aspects of the economic consequences, not for us to show the internal control disclosure of information on corporate actions affecting the whole picture, nor for the disclosure of internal control the latest economic consequences of further empirical evidence. And different from existing research, this paper analyzed and collated a large number of theoretical and empirical literature, based on trying to control disclosure of internal economic consequences of a systematic and comprehensive induction, and the disclosure of internal control information between the various economic consequences of the mechanism in-depth analysis, trying to build an internal control disclosure of information economic consequences theoretical framework. At the same time, in order to make disclosure of information relating to internal control theoretical analysis of the economic consequences of empirical data support this to2010——2009Shanghai during the voluntary disclosure of internal control self-assessment report of the company for the study sample, the internal control disclosure of information and the relationship between earnings quality empirical test. Empirical studies found that, compared to no disclosure of internal control self-assessment report of the company, disclosure of internal control self-assessment report of the company, with lower manipulation of accruals, that is, the internal control disclosure of information to improve the company’s earnings quality, empirical the results show that the internal control disclosure of information with a more positive economic consequences.