Research On Management Overconfidence And The Choice Of Internal Control Disclosure Behavior

Internal control defects are the most core part of the internal control evaluation report.The real disclosure of internal control defects,especially the relevant information of their severity,is the premise and basis for the information decision-making value to be reflected.With the continuous improvement of laws and regulations,the discretionary mode of listed companies in the disclosure of internal control defects is more concealing,is no longer a simple concealment of major defects,there is a certain degree of behavioral choice in the form and severity of disclosure defects,which affects the quality of internal control evaluation report.This thesis first reviewed one by one in 2013-2016 Shanghai and Shenzhen two city a-share main board listed companies' internal control evaluation report,in the internal control of listed companies in China and its defects,on the basis of analyzing the present situation and problems of information disclosure,further to the internal control auditing guidance of "four signs" as the foundation of identification,on the sample analysis of internal control information and data confirmed that the internal control information disclosure of listed companies in our country the existence of the phenomenon of behavior choice and changes in the way.It is found that listed companies under compulsory disclosure deliberately reduce the severity of defects and disclose major defects as important defects or even common defects.Based on executives in the enterprise set up a sound and effective internal control implementation and the decisive role of information disclosure,this article from executives limited rational perspective,the integrated use of principal-agent theory,asymmetric information theory,signal transmission theory,the management of overconfidence and the relationship between the behavior selection in the disclosure of internal control defects were studied.According to the characteristics of activation theory,under the influence of personality traits in some environment will be activated,so this article continues to explore that activate or inhibit overconfidence management behavior selection factors,explore the power distance and robustness under the influence of accounting,management overconfidence and internal control defects revealed the relationship between the behavior selection will change.Finally,the following conclusions are drawn:(1)There is a significant positive correlation between the overconfidence of the management and the disclosure behavior choice of internal control defects.(2)A large power distance will enhance the internal control defect disclosure behavior selection tendency of overconfident managers.That is,a large power distance will activate the overconfidence of the management,so as to make behavioral choices.(3)Accounting conservatism can significantly reduce the tendency of overconfident managers to choose disclosure behaviors for internal control defects.In other words,accounting robustness can enhance information sensitivity by accelerating the transmission of "bad news",so as to inhibit the behavior selection behavior made by the management due to overconfidence.Finally,according to the conclusions of this thesis,the corresponding countermeasures and Suggestions are put forward to promote the quality of internal control defect information disclosure.