The Influence Of Listed Company Internal Control Deficiency Disclosing To Different Internal Control Targets

From the beginning of 21st century,as the happening of a series of accounting scandal such as "Enron event",the honesty crisis hit the America and international society.The problem of internal control had exposed in the sight of the public gradually.At the same time,the failure cases of internal control also happened in our country,which reflected many issues excited in internal control of listed companies.These problems arise from the attention of government and company.After the issue of "SOX act" of America,our country accelerates the institution of the disclosure system of internal control information to public of listed company.The publishing of a series of standards indicated that the system integrated the actual situation of company and added the advanced experiment of some Chinese companies.Our country has already realized the significance of disclose internal control information,as it is a indispensable part of internal control system.The stage of disclosure of internal control information has transferred from voluntary to compulsory.The disclosure of internal control information helped expanded the study of influence factor of the realization degree of internal control targets in academic view,and enrichment the related content of internal control deficiency.In reality,conclusions of the essay can help users of internal control deficiency information to understand and use it well.It also could assist people to realize that the disclosure situation of internal control deficiency information in the environment of compulsory.As a result,conclusions of the essay will have reference value for manager of company,investor and supervision department.The essay adopts document analysis method,theoretical analysis method,and empirical analysis method,conclude and analyze the related journals about internal control deficiency,effectiveness of internal control which is close to the subject of this essay.Stating the meaning of internal control deficiency,target of internal control theoretically,using three main methods of economics to analyze the reason of generating internal control deficiency and the necessity of disclosing internal control deficiency information.Choosing the valid data selected from CSMAR database to conduct regression analysis and drawing conclusions.The main study content of this essay is helping information user utilize the internal control deficiency information to analyze the condition of internal control system of listed company more correctly,and know which factors of internal control deficiency have prominent effectiveness to internal control targets.According these main issues,the essay is divided into six chapters:the first chapter is introduction,the second chapter is literature review,the third chapter is related concepts and theoretical basis,the forth chapter is research design,the fifth chapter is empirical study and interpretation of result,the sixth chapter is research conclusion.After a series of research,the essay draws following conclusions:Firstly,the number and degree of internal control deficiency disclosing by listed companies do not have significant negative correlation with compliance target.When information users want to assess this target,the internal control deficiencies disclosing by listed companies do not have the value of reference.For compliance target,investors can refer to the first big shareholder shareholding appropriately,the independent directors proportion and financial leverage.Secondly,internal control deficiencies disclosed by listed companies has a significant negative correlation with reliable target.Further regression analysis get that the defects of internal control listed companies to disclose will have significant negative influence to reliable target.The higher degree disclosure of internal control defects influence,the more company's financial report will tend to get non-standard audit opinions.Thirdly,the number and degree of internal control deficiency disclosing by listed companies do not have significant negative correlation with safety target.When information users want to assess this target,the internal control deficiencies disclosing by listed companies do not have the value of reference.For Asset security targets,investors can refer to company size and profitability indicators,etc.Fourthly,internal control deficiencies disclosed by listed companies has a significant negative correlation with efficiency target.Further regression analysis get that internal control deficiencies disclosing by listed companies will have significant negative influence to efficiency target,which means the higher degree of listed company disclosing,the higher negative effect to efficiency target measured by return on equity.Fifthly,the number and degree of internal control deficiency disclosing by listed companies do not have significant negative correlation with strategy target.When information users want to assess this target,the internal control deficiencies disclosing by listed companies do not have the value of reference.For strategy target,investors can refer to number of management shares and profitability indicators,etc.According to the study of this essay,the writer comes up some suggestions.Firstly,although the amount of internal control deficiency has correlation with part of the internal control targets,it doesn't have prominent influence on them.The more appropriate method is combine degree and amount of internal control deficiency to analyze,regarding degree of internal control deficiency as dominant factor,and the amount of deficiency is a subordinate judgment criteria.Secondly,the effect of degree of deficiency for daily operation management and validity of financial report is significant,and these two aspects is vital for a listed company.So,when company examines deficiency of internal control system,they should solve the deficiency which order of severity is highest primarily.Meanwhile,the essay has some deficiency in some extent.First of all,the factor system of internal control deficiency is enslaved to the environment of internal control which is incomplete.Next,among all selected data,only a few listed companies disclose the number of deficiency which results in insufficient valid data after selected.Last,this essay did not add variables which are difficult to measure into research model.