Internal Control Information Disclosure,Agency Costs And Corporate Performance

With the expansion of the firm scale,which in turn leads to the division of ownership and management rights,the owner can not take up more than one position and has to hire a professional manager to manage it.In order to effectively supervise the performance obligations of managers,the internal control mechanism was born and has been continuously developed.However,there are not many cases of fraud in the financial markets in the capital markets.The elders of the wood,will be the root of its solid;those who want to flow far,it is necessary to dredge its source.”Right medicine,in order to be targeted.The root cause of the rise of fraud cases lies in the weakness of the corporate governance mechanism for internal control,which in turn leads to the horror of information disclosure distortion.Subsequently,various laws and regulations promulgated in the hope of using mandatory disclosure of internal control information to curb the financial fraud of listed companies,improve the authenticity of information disclosure and revitalize investors' confidence in the capital market.Today,the operating environment,changes in management mode,new scientific and technological applications and companies under complex organizational structure pay more and more attention to governance and risk management.The basis for investors to judge listed companies also expands from financial information to non-financial information.In May 2013,the new COSO internal control framework emerged over time,giving stakeholders a higher demand for the transparency of their internal control systems that support business decision-making and organizational management.The changes in the framework of principles,the expansion of the scope of implementation highlights the technology,business environment,the focus of internal control will be more and more biased in value creation.In January 2014,CSRC released the principle of compiling internal control information of listed companies,requiring listed companies to disclose the 2013 internal control evaluation report in accordance with the requirements and format stipulated by the principle,so that the contents of information disclosure of the listed company about internal control were very different big change.Policy-oriented and standardize the construction of our internal control system so that stakeholders can timely monitor the integrity of the internal control of listed companies and the authenticity of information disclosure,so as to enhance the ability of internal governance and risk response of listed companies.Therefore,the disclosure of internal control information plays a decisive role in the capital market in China.Is the perfect internal control system really self-restraint,improving corporate governance and creating value for the company?Based on this,this article uses literature analysis,logical assumptions and empirical test methods,and in the context of the newly revised COSO internal control framework,referring to the Dibo·internal control information disclosure index,listing the A-shares of China's Shenzhen stock market from 2013 to 2015.In the empirical analysis,whether the five elements index is fully disclosed serves as the basis for dividing the two sample groups so as to verify whether only the aggregate information index disclosed by the five internal control elements can influence the company's operating performance through the intermediary variable of agency cost.In order to explore the truth of this issue,this article puts forward three major assumptions,and in turn demonstrates.First of all,it elaborates the theoretical basis of internal control information disclosure on corporate performance,and empirically analyzes it with two comparison groups respectively.Secondly,it introduces the theoretical summary of agency control cost of internal control information disclosure and the empirical analysis of two comparison groups.Finally,Combining the results of the previous two tests,we verify whether the interaction between agency costs and corporate performance exists through the disclosure of internal control information.The findings of this paper find that the fully disclosed five-element summary information index is significantly and positively correlated with the company's performance,and significantly negatively correlated with agency costs.Only when the five elements are disclosed,the index of internal control information aggregation can affect the performance of the company through the agency costs,and the agency costs play an incomplete intermediary role.The conclusion of this paper shows that the importance of information disclosure of the five elements of internal control is only the key to building a sound internal control system to ease the conflict between principal-agent and the business performance.At the current transition of business model caused by economic restructuring,and in the COSO Committee to update the internal control report platform,our country should improve the overall internal control system to adapt to the new economic situation,so as to find a new life.This study provides useful reference and evidence support for the improvement of the internal control system.It elaborates some suggestions from the perspective of the company reporting changes in its own objectives,perfecting the governance mechanism,and avoiding fraud risks.It also points out that this article exists in the creative process Insufficient,the future will be how to expand the study.