| Since American Enron event and a series of listing Corporation fraud after the incident, foreign strengthen the research on the internal control of foreign companies, especially on the disclosure of internal control defects. In order to cope with the possible fraud, USA issued to strengthen listing Corporation Supervision——Sarbanes Oxley Act, internal control research on the academic field has reached a new stage. The foreign research of internal control gradually formed a complete system, especially the study of internal control deficiencies, from the connotation of internal control deficiencies and identified internal control deficiencies occurred reasons, to disclose internal control deficiencies and other economic consequences, are more comprehensive and systematic. But the domestic research of internal control are relatively late, which is related to the China’s economic development stage, laws and regulations relating to the internal control system is not very sound, "the basic norms of internal control" and related guidelines also enacted in recent years and implementation of the listed companies to disclose internal control deficiencies in many non-standard place, and in the academic field, the domestic is not in-depth study of the disclosure of internal control deficiencies, achievements are less and less. Based on this, this research aims to study the listing Corporation internal control deficiencies and defects of internal control disclosure, disclosure of economic consequences analysis.This paper first introduces the relevant theory of defects of internal control disclosure, on this basis, in 2011,2012 and 2013 were chosen to disclose internal control information of defect of the Shanghai and Shenzhen two city A shares of listing Corporation as the research object, according to the corresponding conditions are selected to meet the requirements of the Sample Firms. Then, the paper further proposed the company’s available resources and complexity from the company are two aspects of the research hypotheses about the internal factors of Chinese listed companies to disclose the status of control deficiencies, resigned from earnings quality, the audit fees and the auditors in three areas statistical analysis of China’s listed companies on internal control deficiencies to disclose the status of the economic consequences of the study hypothesis and build a multiple regression model and logistic regression model. using descriptive statistical analysis, correlation analysis, multiple linear regression analysis, and testing research article Assuming reasonable. This paper’ main conclusions are as follows:(1) The more resources available to companies or higher complexity to companies, while companies to disclose more the number of defects in the internal control;(2) Companies to disclose more the number of defects in the internal control, the possibility of the company audit fees increased higher and higher.and Company has more probability of auditor Resignations.Finally, based on theoretical analysis and empirical test on related problems of defects of the disclosure of internal control, this paper combined with the actual situation in our country are proposed from the three perspectives of the company’s own internal control construction, external supervision and investors, and summarizes the research limitations and the future direction of further study. |
