Internal Control Information Disclosure and Debt Financing Efficiency

Abstract

In this paper, we select the panel data of A-share listed companies on the main board of Shanghai and Shenzhen Stock Exchange from 2010 to 2020 as our research object, and empirically tests the significance and heterogeneity of the effect of internal control information disclosure on the improvement of debt financing efficiency. Our findings suggest that whether it is benchmark regression test or instrumental variable method test, the improvement of the quality of internal control information disclosure has a very significant positive effect on the efficiency of debt financing of listed companies. Further research found that compared with non-state-controlled listed companies, state-controlled listed companies can obtain higher positive effects. Therefore, our research suggests that listed companies should be gradually guided to pay more attention to improving the quality of their disclosure of internal control information. At the same time, government should speed up the perfection of regulations of corporate’s internal control, and strengthen the supervision of corporate’s internal control information disclosure, so as to ensure economic security and maintain the stability of capital market.