Study On Market Reaction Of Internal Control Evaluation Report Of Small And Medium-sized Listed Companies

Since 2014,the internal control evaluation report of Listed Companies in China has entered into the mandatory disclosure stage from voluntary disclosure.In recent years,small and medium-sized board market as a platform for the development of SMEs has played an important role with the rapid development of small and medium-sized enterprises.The research on it has gradually increased,but compared with the main board,there is a big gap in quantity and quality.In this context,the market response to the internal control evaluation report of Listed Companies in the SME board,but since 2015 the development of the stock market freeze,each listed company share price fluctuations and it gradually leveled off after February2016.Therefore,this paper only selected relevant data of 2016 in order to study the rationality.The article mainly uses the event study method and the multiple regression method to carry on the research.First of all,the event study method is used to calculate the excess return rate of Sample Firms,and whether the internal control evaluation report brings excess returns in the event period.The study found that in the announcement after a short period before the event,some Sample Firms in the window of the cumulative abnormal return through a significant test,but focus on the announcement date before.Secondly,in order to eliminate the influence of other factors,I select the internal control evaluation report information index as the explanatory variable,the accumulated abnormal return as explanatory variables,and choose the company size,capital structure,company age,size of the board of supervisors and accounting earnings as control variables.Then we use multiple regression analysis to test whether the factors that cause market reaction come from internal control evaluation report.The results show that the internal control evaluation report can cause market reaction in the capital market.Finally,the paper puts forward some suggestions from three aspects of government,enterprises and investors according to the research conclusions to create a better disclosure environment of internal control evaluation report.