Research On Information Disclosure Of Internal Control Of Chinese Commercial Banks

Since the 1990 s, the risk events of domestic and international banks have been common. The risks of Barings bank and the industrial bank were shocked in the world. The research on the commercial bank risk events by the Basel Committee showed that the main reason was the failure of internal control. In China, for the reason of history culture, the banking occupied an important position in the financial system. Because the banking played an decisive role in the Chinese financial stability, the safety and liquidity of banks was very important. In order to ensure the improvement of the banking safe and stable, a sound internal control and adequate internal control information disclosure was necessary. The requirements were stricter than that in general enterprises. The construction, implementation and supervision of the banking internal control were measured only by the channel of public information disclosure. Through the internal control information disclosure of the banks, the government, the banking regulators, the creditors and the investors can understand the effect of the internal control, and the questions existed in the internal control. So they can judge the merits of the banking internal control, guide the stakeholders to take the next step. Meanwhile, the transparency information disclosure of internal control can also supervise and urge the Banks themselves to improve the construction and implementation constantly improve risk control ability and promote to realize the internal control goal in the safe and stable environment. Based on the importance of the commercial Banks internal control information disclosure, this article selects the latest annual report data of 45 commercial bank’s in China as the research object and takes the empirical analysis by using the content analysis, description, statistics and multivariate linear regression model. Through the research on the status of internal control information disclosure and the influencing factors, this paper get the following conclusion: Through the analysis of the situation we found that the carrier of internal control information disclosure of Chinese commercial Banks focused on the internal control evaluation report, internal control audit report, annual report internal control section and social responsibility report gradually. On the content of the disclosure, mandatory disclosure information performed better than the voluntary information, the internal control elements and information feedback the of the situation was poorer; Through the factors that affected the empirical analysis we found that the independent directors proportion and the number of audit committee meeting for the sample Banks had significant positive influence on the internal control information disclosure level in domestic market situation. But the total assets, asset quality and profitability and other factors had no significant effect. Based on the research conclusion we put forward some corresponding improvement suggestions: for the inside of the Banks, we should focus on strengthening the supervision system construction of internal control, and make the operation of the mandatory measures to guarantee the supervision system; for the external of the bank, the capital market can be a timely development features of small and medium-sized commercial Banks,to get more qualified small and medium-sized commercial Banks listed and let them get more rigorous and transparent market oversight.