A Research Of Demand And Supply Of Internal Control Information Disclosure Of Chinese Listed Company

In2002, the signing and implementation of the Sarbanes-Oxley Act, making thedisclosure of information about the internal control to be necessary for listed company,the disclosure of information in the United States to become mandatory disclosure. Theimplementation of the bill also had a great impact in the development of the internalcontrol system of our country. In2006, Shanghai and Shenzhen Stock Market accord totheir exchanges enacted "the Shanghai Stock Exchange Guidelines","the Shenzhen StockExchange guidelines" to make provision, in an attempt to regulate the capital market.Then, the listed companies should improve the situation of its internal control bypublishing self-assessment report, and this report needs CPA’s audit opinion and signedto prove it’s creditable. Subsequently,"Basic Standards for Enterprise Internal Control"was introduced and implemented, and explained, supplement it with the three"Implementation Guidelines" document. Internal control system gradually establishedand developed in our country, it plays a significant role to improve for our businessmanagement capabilities and reduce the impact of business changes brought about by theeconomic environment.With the development of the internal control system, how to improve the internalcontrol’s information disclosure of listing Corporation’s quality has become a major topicof academic research. The disclosure of information is due to the supply and demandsides, under the government intervention, the contradiction between supply and demandof internal control information is an important factor in the quality of informationdisclosure of internal control. So I try to explore effective ways to improve the quality ofinformation disclosure of internal control of Chinese listing Corporation, from the supplyand demand.This paper use the method of combining normative and empirical, and discussesprevious empirical research conclusion, this paper is divided into the following six parts:The first part introduce the background, value of this research, domestic andinternational literature review, research ideas, methods and possible innovation.The second part explain information disclosure of internal control: the definition adopts Shanghai Stock Exchange, on Internal Control of Listed Companies; the supplyand demand theory and signaling theory in this paper, and pointed out the relationshipbetween supply and demand.The third part is to study the supply of internal control information of listingCorporation: selecting the Shanghai and Shenzhen Stock Exchange motherboard A sharesof listing Corporation, qualitative and quantitative analysis on the information disclosureof internal control evaluation, qualitative evaluation is mainly whether disclosure,disclosure format, length, whether disclosure defects, quantitative evaluation based onthe content analysis method to establish the index system covers19indicators, based onthe full consideration of the index weight, score and analysis of each index and enterpriseoverall disclosure, we think that proportion of disclosure is low; the formats of disclosureis varying; disclosure length can’t meet the needs of an effective amount of information;the lacks of internal control is few; overall quality of disclosure is poor.The fourth part is the investigation and Study on internal control information users:first subject to internal control information demand, demand characteristics are analyzed;then by Likert questionnaire, the specific needs of the internal control information isdescribed based on the statistics and analysis.The fifth part is the analysis of the differences, the internal control information ofsupply and demand situation, the contradiction of supply and demand situation,according to the information of the third part and the fourth part of the study, comparison,find out the main contradiction between supply and demand, the main reason is that:Ownership structure of listed companies have an impact on the disclosure; motivationinternal control information disclosure of listed companies is lack; specific internalcontrol evaluation criteria is few; internal control mechanisms are inadequate informationdisclosure responsibility; insufficient effective demand information.The sixth part is the conclusion and suggestion: according to the above reasons ofsupply and demand contradiction formation, puts forward some improvementsuggestions, the first is to establish a sound corporate governance structure; the second isenhanced dynamic enterprise internal control information disclosure; the third isdisclosure of internal control information on the illegal behavior accountable should bepunished; the forth is to improve system of internal control information service; the fifth is to develop effective internal control information demanders; the sixth is To leave thebusiness full time. The conclusion part summarized the paper.