The Inpact Of Corporate Governance Structure On Quality Of Interal Controls’ Information Disclosure

With keeping moving forward for Chinese economy,corporate fraudulent practices are much more than before. These corporate fraudulent practices make eternal controls becoming an important focus for monitor and investor. Researches of eternal controls and disclosure of eternal controls in China are late than researches in other developed countries. To laws in disclosure of eternal controls in China,Shanghai and Shenzhen stock exchange published a guide of eternal controls which is not mandatory in2006. And in2008five minister published <<tandard of corporate eternal controls>>which is mandatory for all listing company. So we can see the importance of disclosure of eternal controls to Chinese capital market. Relation of corporate governance and disclosure of eternal controls are very close. For one hand,because corporate governance is eternal driving force to disclosure of eternal controls,if corporate governance is not good,the integrity and the reliability of disclosure of eternal controls can not be guaranteed. For other hand, the high quality of disclosure of eternal controls can promote corporate governance.By the words mentioned above,this article think the extent of disclosure of information to improve the corporate governance structure would have a significant impact on internal control. Disclosed in the company’s internal control information in the process, because the Board to maintain a certain scale, will help to improve the oversight role of the board of the CEO; higher concentration of shares in the company so that shareholders have the ability to have enough power to gather information on the company’s management oversight, so management in the disclosed information will have to improve the reliability and integrity of information. If the controlling shareholder of the company is state-controlled enterprises, the self-confidence to improve the company’s help, thus ensuring raise the level of information disclosure.For mentioned reasons, at first this article reviewed research achievement of corporate governance, eternal controls and disclosure of eternal controls in and out China. For the second, by illustrating concept of corporate governence,eternal controls and disclosure of eternal controls, this article make the "ownership concentration","natrue of controlling stake "and " scale of board" being the explanatory variable,and then build hypothesis. By using descriptive statistical method to analysis Shanghai stock’s listing company,and point out the influence of corporate governence to disclosure of eternal controls. The output showed that the relation of ownership concentration and disclosure of eternal controls is negative. It means high concentration of ownership can reduce the quality of disclosure of eternal controls. The other two explanatory variable is not significant to quality of disclosure of eternal controls. The final step,this article suggest something such as reducing concentration of ownership, explicit subject of responsibility to enhance the quality of disclosure of eternal controls.