Internal Control Self-assessment Report Disclosure Quality And Corporate Performance

Since June 28,2008,“the enterprise internal control basic norms” released,in April 2010 the Ministry of Finance,the China Securities Regulatory Commission,the Audit Commission,the China Banking Regulatory Commission(CBRC),China Insurance Regulatory Commission(CIRC)and other five departments jointly issued “the basic norms of enterprise internal control supporting guidelines”,as “Chinese Sarbanes Oxley Act” to prevent commercial fraud and financial fraud.In August 14,2012,the Ministry of Finance and the office of the China Securities Regulatory Commission jointly issued the "notice" on the partial implementation of enterprise internal control standard system in 2012 listed on the classification,clear requirements since 2012 and all of our company listed on the main board should embark on the construction of internal control system.The disclosure of internal control self-assessment report of this paper will focus on the voluntary disclosure duration between 2009 and 2012,of which the relevant laws and regulations has promulgated.We choose the manufacturing industries of Shanghai and Shenzhen stock markets,of 3924 listed companies as the research object,according to the disclosure of the annual DIBO database self-control assessment report quality index and the listed company database of internal control as the basis of research,to establish model between internal control self-assessment report quality and corporate performance.This paper uses the method of theoretical analysis and empirical research to study the correlation between the quality of internal control self-assessment report and corporate performance of listed companies,the following conclusions are drawn: First,during the voluntary disclosure period,the overall quality of the internal control self-assessment report is low,and the information content is not high.Second,the standard unqualified audit report can enhance the reliability of internal self-control evaluation report,and will be positively correlated to corporate performance.Third,companies which have standard unqualified audit opinion of internal control but afterwards appear the violation actions have lower performance than companies that issued standard unqualified audit opinions and have no irregular acts;but take rectification measures of the company,performance will be higher than that of illegal but have no rectification measures.Finally,the improvement of the quality of internal control self-assessment report has a positive effect on the improvement of corporate performance.There is a significant positive correlation between the quality of internal control self-assessment report and corporate performance.