Information Content Of The Internal Control Audit Opinion Of Listed Companies In China

With the constantly emerging of the global financial fraud, more and more people paidgreat attention for the safeguard mechanism of internal control. In order to encourage theestablishment and perfection of the internal control, our country formulate rules andregulations. In2010China’s ministry of finance jointly with the securities regulatorycommission, the national audit office, the China banking regulatory commission, insuranceregulatory commission issued the "Supporting guidelines for enterprise internal control". Thisis our country’s beginning of our listing corporation disclosure internal control audit report.This is the turning point of China’s listed companies to publish internal control auditing report.Since the publication of the guidelines, the enterprises of our country pay more and moreattention to the design and implementation, the number of the company which disclosure theinternal control self-assessment report and the audit report of the enterprises is also increasing.However, the execution of internal control, the disclosure of internal control audit reportwhether can bring positive benefits, internal control audit opinion whether or not to passeconomic signals, whether or not to have information content are to study.In this paper, first to review and evaluation the domestic and foreign internal controlauditing research status, puts forward the research content and the innovation spot. Second toelaborate the inevitability and necessity of internal control audit, based on principal-agenttheory, signaling theory and investor behavior theory, expounds the relevant conceptand related to this article. In This paper focuses on China’s internal control audit opinion asthe information content to analyze, select the A shares of listing Corporation in2011-2013year in the Shenzhen Stock Exchange and the Shanghai Stock as the researchsample, which was issued by the standard unqualified audit opinion, and set thecorresponding control samples. This paper analysis when publish the internal control auditreport before and after10days, the changes of stocks’ average excess return rate (AAR) andthe cumulative abnormal return (CAR), then using the cumulative abnormal return, the typesof internal control audit opinion, companies’ size, the net assets yield rate and the dividend distribution scheme for multiple regression analysis. Final conclusion is: the non-standardinternal control opinion negatively correlated with investor expectations for the stock.According to the theoretical and empirical analysis, this paper put forward some suggestionsto improve and perfect our country internal control.