Analysis On Influence Factor Of Information Disclosure Of Internal Control In Listed Companies

Information disclosure of internal control, a key component of informationdisclosure, not only reflects establishment and operation of the enterprise internalcontrol, but also affects investment decision-makings and external supervision. Themining enterprises play a crucial role of national economy, therefore perfecting itsinternal control system and information disclosure of internal control is the pressingtask for managers. Many researchers have studied the influence factors of informationdisclosure of internal control, but rarely in mining listed company. Therefore, withconsideration of its own features, in this study we mainly analyze in mining companywhat factors affect the information disclosure of internal control before proposingrelevant effective suggestions with demonstrations.We first introduce the concepts of internal controls, information disclosure ofinternal control and its effects on administrators, investors, financial reports andmarket. Then we discuss management systems in listed companies from differentcountries. At last we empirically study influence factors of information disclosure ofinternal control in listed mining enterprises. In demonstration, we classify theinfluence factors into three kinds: financial situation; corporate governance structure;external supervision. Considering the mining listed companies in Shenzhen andShanghai as our study samples, we collect annual reports from2010to2012to makedescriptive statistical、 correlation and multiple linear regression analyses ofinformation disclosure of internal control using SPSS software. The hypothesis fromempirical analyses could be proved by our model. The empirical study shows therising trend of information disclosure of internal control in mining companies inChina; however, the disclosure degree is significant variation and overall level islagging behind. In multiple regression statistical analysis of the sample data, we can conclude that information disclosure of internal control maintain a positive correlationwith profitability, type of dominant stockholder, accounting firm’s reputation andaudit opinion type; a negative correlation with liabilities; a non-significant correlationwith company management, the proportion of independent directors and concurrentlybeing chairman and general manager. Base on theory and empirical analyses, twomain suggestions are proposed on how to improve information disclosure of internalcontrol of mining listed companies. One is internal governance, meaning an emphasisto internal controls, sound governance structure and internal audit coming into play.The other is external supervision which includes perfecting the information disclosurecriterion of internal control in mining companies, enhancing the supervision as well asthe audit of information disclosure of internal control by CPA.