The Relationship Between Internal Control Effectiveness And Quality Of Environmental Information Disclosure :An Empirical Study

In recent years, environmental problems such as water leakage and smog pollution has become increasingly serious, thus it leads the public put attention into the corporate environmental responsibility. Environmental pollution comes mainly from lack of corporate responsibility, lax of internal control and paralyzed government regulation. In order to solve the contradiction between environmental governance and economic development in our country, the government has successively promulgated a series of laws and regulations. Based on promulgation and implementation of Application of Enterprise Internal Control Guidelines and the revision of Environment Protection Law, the thesis mainly discusses the relationship between enterprise internal control effectiveness and the quality of environmental information disclosure in China.By analyzing relationship between the internal control effectiveness and the quality of environmental information disclosure under the related theories, the author chooses data from listed companies of heavy pollution from 2009 to 2013 as research objects to review the relationship between internal control effectiveness and the quality of enterprise environment information disclosure. Then the author intends to find how objects effectiveness affects the quality of enterprise environment information disclosure. After the previous steps, the author compares the two sub-samples in order to find whether the relationship between internal control effectiveness and quality of environmental information disclosure changes before and after the implementation of The Guidelines. In the end, it gives the conclusion of the research and suggestions for fulfillment of corporate environmental responsibility, construction of internal social responsibility and government regulation in our country.The research shows that the internal control effectiveness and environmental information disclosure quality is significantly positive related. Internal control compliance target on the quality of environmental information disclosure is the most significant, followed by strategic target effect, but it compose to the null hypothesis, it is negative related; business objective effects are not significant. Before the implementation of The Guidelines in 2011, the internal control effectiveness positively affects environmental information disclosure quality, but not significantly. While after the implementation of The Guidelines, the impact on the quality of environmental information disclosure of internal control is more positively significant. Hence, the comparison shows that the implementation of The Guidelines is targeted, which strengthens the influence of internal control effectiveness to environmental information disclosure quality.In the end, the thesis puts forward the important way of enterprise to perform environmental responsibility is to disclosure the environment information in public and build up social responsibility of the internal control. In addition, it also suggests the government to strengthen monitor system and introduce the related policies.