Research About The Effects Of Listing Corporation Exposure Of The Material Internal Control Weakness On The Transparency Of Information

With the promulgation of the basic standard of internal control for enterprise and the supporting guidelines of internal control for enterprise, internal control audit has been paid extensive attention. The research of the positive influence after exposure of the material internal control weakness is still in the preliminary exploration stage, and a unified conclusion has not formed. Whether the improvement of the management behavior affects the company’s information transparency or not, after the exposure of the material internal control weakness, is a hot spot.Based on the review of the definition of the material internal control weakness and information transparency, as well as the relationship between the material internal control weakness, corporate governance variables and the company’s information transparency, the empirical research methods are used to do the following two aspects of work:With non-financial listed companies exposing material internal control weakness in2007-2008in Shenzhen Stock Exchange as samples, quantifying the marking according to the severity of the material internal control weakness signs, the changes of the company information transparency during a year before and four years after the exposure of the material internal control weakness are tested using paired samples T test. Research shows that, the information transparency is the lowest in the year of the exposure of the material internal control weakness, but increase year by year in the four years after the exposure.With information exposure test score manually collected from (www.szse.cn) Shenzhen website "credit file" as standards to measure corporate information transparency, regarding the score got from transparency score in the year of2009minus transparency score in the year of2007and2008as the improving degree of information transparency, ordered Logistic regression method is used to test if the changes degree in the external supervision, the changes degree of the ratio of share concentration, the changes degree of the joining between chairman and CEO, and the changes degree of the proportion of independent directors are mediation variables between the exposing degree material internal control weakness and the improving degree of information transparency. As a result, only the changes degree of the proportion of independent directors is validated. The other mediation variables are not proved.