Study On Internal Control Information Disclosure Quality Of GEM Listed Companies

The research on issues of internal control information disclosure of listedcompanies has been widespread concern academia, and as an important part of China’scapital market, since most of the Growth Enterprise Market (GEM) are high-techenterprises, with the characteristics of high growth, high risk, so the informationdisclosure requirements about GEM listed company in our country are more strict thanother businesses. Due to the late start of the relevant research on information disclosureof internal control, although there have been certain achievements in recent years, butmost are concentrated in the main board listed company, in view of the GEM listedcompany’s article is relatively less. Therefore, in the context of China’s internal controlsystem has basically formed, it has important significance to study the internal controlinformation disclosure quality of the GEM enterprise, which is still in the stage ofvoluntary disclosure of internal control information. This paper selects355companieswhich are listed on Shenzhen Stock Exchange GEM until December31,2013as thesamples, obtains internal control information from the internal control self-evaluationreport and evaluates its quality.Firstly, this paper defines the related concepts of “internal control informationdisclosure quality”, based on the analysis of the theory on internal control informationdisclosure, combined with the characteristics of GEM listed companies, using thecontent analysis method to design an evaluation system consists of three levels, buildthe internal control information disclosure quality index (ICIDQI) of GEM listedcompany from timeliness, authenticity, integrity, and analyze the evaluation results oftheir internal information quality. Concluded that the current internal controlinformation disclosure quality level of GEM is not high.Secondly, this article selects ICIDQI as explanatory variables, proposes9hypotheses from the company’s financial condition, corporate governance structure,audit organization, and chooses9independent variables to build a regression model andempirical study of the main influence factors of GEM listed company’s internal controlinformation disclosure quality. The results show that the profitability of company, theresist risk ability and the frequency of board meetings are significant positivelycorrelated with ICIDQI; the company’s growth, the chairman and general managerwhether joining together are significant negatively correlated with ICIDQI; the stock rights concentration, the ratio of independent directors, accounting firm reputation, andthe type of audit opinion have no significant impact on ICIDQI.Finally, according to the above research, the paper summarizes the currentproblems in the process of GEM listed company’s internal control informationdisclosure, analyzes the reasons of its quality level is not high, and puts forward thecorresponding countermeasures, including: further improve the internal controlinformation disclosure framework, further standardize information disclosure evaluationof internal control standard, further strengthen the corporate governance structure,further intensify the punishment of violation, and further improve the quality of internalcontrol personnel.