Internal Control Information Disclosure Research Articles

Media pressure, internal control, and corporate environmental information disclosure

This article delves into the intricate connection between media pressure, corporate environmental information disclosure, and internal controls. It uncovers that media pressure and internal controls exert a substantial influence on corporate environmental information disclosure. Media pressure serves as a catalyst, compelling companies to bolster their environmental information disclosure in response to public concerns and market demands, thereby augmenting their reputation and image. Notably, online media pressure plays a particularly significant role in this regard. Conversely, a robust internal control system enhances the level of corporate environmental information disclosure. In the context of the relationship between media pressure and corporate environmental information disclosure, internal controls assume a mediating role.

Cultural similarity of non-local independent directors and financial reporting quality

By manually collecting data on the birthplaces of independent directors of Chinese A-share listed companies from 2005 to 2019, we construct a cultural similarity index for non-local independent directors according to the dialect data and empirically test its impact on the financial reporting quality of listed companies. The results show that an increase in the cultural similarity of non-local independent directors is conducive to improving the financial reporting quality of the listed companies in which they serve. The mechanism analysis shows that cultural similarity can improve financial reporting quality by improving internal control quality and information disclosure quality. Our heterogeneity analysis shows that this effect is more pronounced when the listed company has a better external monitoring environment, the company is a non-state-owned enterprise, and the company is located in a region with a high degree of marketization. In addition, the robustness test results show that our conclusion is robust.

Does enterprise digital transformation contribute to the carbon emission reduction? Micro-level evidence from China

Energy saving, emission reduction and low carbon development are the key contents to promote sustainable development in the world, which are also important paths to achieve China's "dual carbon" target on schedule. Especially in the wave of digital economy, the optimization of production mode brought about by the enterprise digital transformation is becoming an important driving force to reduce carbon emission intensity of enterprises. Based on the text analysis of 2012–2020 annual reports of Shanghai and Shenzhen A-share listed companies, we measure the level of enterprise digital transformation, and then empirically investigate the impact of enterprise digital transformation on carbon emission intensity and the mechanisms. We find that enterprise digital transformation can significantly reduce the carbon emission intensity by improving their ability of technological innovation, internal control and environmental information disclosure. And the results are robust after a series of robustness tests such as eliminating the endogeneity bias, replacing variables and limiting samples. Furthermore, heterogeneity analysis show that digital transformation has a stronger effect on the enterprises which located in the regions with strong intellectual property protection and the capital intensive enterprises, but there is no heterogeneity in the types of enterprises, in the intensity of environmental regulation of enterprises and in the information infrastructure construction of enterprises. Under the background of digitization, this paper discusses the path choices for enterprises to reduce carbon emissions, which provides references for enterprises to grasp the opportunities in the new tide of scientific and technological revolution and green economic transition.

Internal Control Information Disclosure and Debt Financing Efficiency

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.

Secretary of Board of Directors and Corporate Internal Information: Evidence from Chinese Stock Market

In 2006, the implementation of the new company law confirmed the executive status of the secretary of the board of directors for the first time in a legal sense, and also emphasized the responsibility of the secretary of the board of directors in handling information disclosure affairs. Internal control information disclosure is the enterprise according to the standard of internal control evaluation of the enterprise internal control system of self-evaluation, investors judge the value of the enterprise. Can the secretary of the board of directors affect the quality of internal control information disclosure of listed companies? The role of his personal background in the process of information disclosure deserves further study. Based on the empirical study of 2400 listed companies in Shanghai and Shenzhen by using the random effect model (REM), this paper finds that the working time, shareholding situation, multi-position situation and educational background of the secretary of the board of directors have a positive impact on the internal environment, risk assessment, control activities, information and communication, and information disclosure quality of internal supervision. However, the gender of the secretary has little impact on the quality of such information disclosure. In addition, this paper also explores state-owned enterprises and gets the same results. It can be seen that the personal background of the secretary for the President has begun to play a role and the implementation of the secretary for the President system is gradually on the right track.

Research on the Influencing Factors of Cash Holdings of Listed Companies—Based on the Perspective of Dual Principal-Agent Theory

From the perspective of dual principal-agent theory, this paper takes the panel data of A-shares in China from 2012 to 2019 as the research object, uses fixed-effect model to empirically analyze the influencing factors of cash holdings of listed companies from three aspects: ownership structure, board characteristics and quality of internal control information disclosure. At the same time, the empirical results are explained theoretically. The research in this paper is of positive significance to the cash holding management of listed companies in China.

Dynamic Mechanism of Innovation Investment in China's Marine Economic System

Li, X. and Liu, Y., 2019. Dynamic mechanism of innovation investment in China's marine economic system. In: Li, L.; Wan, X., and Huang, X. (eds.), Recent Developments in Practices and Research on Coastal Regions: Transportation, Environment and Economy. Journal of Coastal Research, Special Issue No. 98, pp. 38–41. Coconut Creek (Florida), ISSN 0749-0208.On the basis of A-share data of marine listed companies in the Shanghai and Shenzhen stock markets of China from 2014 to 2017, this paper aims to explore the dynamic mechanism of innovation investment in China's marine economic system. The study finds that the managerial power and the quality of internal control information disclosure both have a positive effect on innovation investment in the marine economic system; the latter plays a partial intermediary role, whereas the former affects innovation investment. Additionally, the innovation investment of marine companies is also found to be affected by factors such as enterprise size, growth, financial leverage, return on assets, and Tobin's Q.

Research on Internal Control Information Disclosure of Real Estate Industry—Taking Taihe Group as an Example

Research on Internal Control Information Disclosure of Real Estate Industry—Taking Taihe Group as an Example

The Effect of Internal Control Disclosure on Financial Information Quality and Market Performance distinguished by the Corporate Governance Index

Corporate disclosure practice of internal control in Indonesia remains non-mandatory and limited in nature. This study was conducted to analyze the level of internal control disclosure in the annual reports of Indonesian public corporations and identify its consequences on the firm’s market performance and financial information quality, which was differentiated by corporate governance index. This index refers to the Corporate Governance Perception Index released by the Indonesian Institute for Corporate Governance in 2014 and 2015. Based on the conducted content analysis, it can be concluded that the disclosure of internal control by public corporations in Indonesia is still at an intermediate level. The influence of extensive internal control information disclosure on market performance is strengthened by the accounting information quality. And the influence of the relationship between extensive disclosure and firm performance is different between CGPI-indexed companies and those which are unindexed by CGPI. The findings of this research contribute to future researches related to internal control disclosure. Limitations and suggestions can be found at the end of this study.

Research on Optimization Strategy of Enterprise Internal Control Based on Risk Management

With the deepening of market economy and the development of global economic integration, Chinese enterprises are faced with complex competitive pressures, and internal control plays an irreplaceable role in maintaining the healthy development of enterprises. The article is based on this understanding, first introduced the risk management and internal control of the relevance, and then to risk-oriented perspective, to internal control information disclosure as the research entry point, analysis of internal control problems, the final targeted The corresponding strategy.

Research on the Factors Influencing the Quality of Internal Control Information Disclosure in China

An increasing number of financial fraud scandals have burst, and the effectiveness of internal control of listed companies has been questioned. Therefore, both listed companies themselves and external information users such as investors and bondholders are in urgent need of finding a reliable and reasonable way to understand the enterprise's internal control status. From the perspective of listed companies, the disclosure of internal control information is the first way for the managers to complete the fiduciary duty, and secondly, it is an important way to enhance the managers' awareness of internal control. From the perspective of external information users, disclosure of internal control information can provide information which can help the investors to make decisions besides the information of the financial report. At the same time, it can also increase the reliability of the financial reports used by the investors. Based on the analysis of the influencing factors and existing problems of disclosure of internal control information in China, then we making some suggestions.

Information Disclosure in Internal Control Based on the Motivation Selection Perspective

Since the release of a series of related laws and regulations of internal control in our country, the implementation and disclosure of it has improved step by step, but at present the situation is still not optimistic in the voluntary disclosure of listed companies' internal control information in general. Management is not willing to disclose the actual internal control information for their own benefits, which leads to the low quality of information disclosure in internal control in China's listed companies.This article mainly analyzes the reason why the management is reluctant to disclose internal control defects from the perspective of "motivation selection" and puts forward the suggestions on how to improve our country's internal control information disclosure of listed companies.

Internal control information disclosure and corporate governance: evidence from an emerging market

Purpose The purpose of this study is to increase our understanding of the impact of corporate governance factors on the disclosure of internal control information by firms in Ghana. Design/methodology/approach A data set from 110 firms in Ghana for the year ending of 2013 was used. Each annual report was individually examined and coded to obtain the disclosure of internal control information index. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by regression analysis, which forms the main data analysis method. Findings Results of the disclosure of internal control information mean of 35 per cent indicate that most of the sampled firms did not disclose sufficient internal control information in their annual reports. The low level of internal control information disclosure cannot be used by stakeholders to determine the level of corporate governance practices in the sampled companies. The results of the regression analysis indicate that board independence is a significant variable that explains the disclosure of internal control disclosure. This supports the generally held view that independent directors help to improve the quality of disclosure and increase the transparency of information. Originality/value This is the first study in Ghana that considered the impact of corporate governance factors on internal control information disclosures. This study contributes to the literature on the relationship between corporate governance and disclosure by showing that the disclosure of internal control information in Ghana is associated with the proportion of independent board members. This findings support Sarbanes–Oxley (SOX) 404 requirements, even though this is not compulsory for Ghanaian firms unlike their US counterparts. The findings of this study will help market regulators in Ghana and Sub-Saharan Africa, Security and Exchange Commission (SEC) and the Sub-Saharan African Exchanges in evaluating the adequacy of the current disclosure regulations in their countries. Understanding the board composition and their impact on voluntary disclosure provides evidence on the sufficiency of the board of directors’ guidelines in the corporate governance code in Sub-Saharan African countries.

Internal Control Information Disclosure Quality, Agency Cost and Earnings Management—Based on the Empirical Data from 2011 to 2013

Internal control information disclosure is a key factor to investors’ decisions, and is closely connected with corporate governance. It also has a direct impact on agency cost and earnings management. This article verifies the relationship between internal control information disclosure, agency cost and earnings management with the Shenzhen A-share listed companies from 2011 to 2013 as samples, and we build the internal control information disclosure index (ICIDI) to evaluate the quality of internal control information disclosure based on the Standard for Enterprise Internal Control. By analyzing, we found that internal control information disclosure can affect earnings management through agency cost, and the improvement of internal control information disclosure will effectively reduce agency cost, thus reducing earnings management.

An Empirical Study on the Internal Control Efficiency of Listed Engineering Companies

authors carried out an empirical study on the internal control efficiency of publically listed engineer- ing companies in China. This study presents an exploration of the relationship of independent director ratios, audit committee quality and auditor independence with the internal control efficiency of publically listed engineering companies and forward suggestions and recommendations on raising the internal control efficiency of publically listed engineering companies. requires that the leader of the listed company should provide self-evaluation report of internal control based on the company's internal control design and operating effectiveness and the company should also regularly employ external audit institutions to provide authentication opinions in terms of the internal control self-evaluation report. From then on, the listed companies in the US entered the internal control information mandatory dis- closure phase. In recent years, in order to guarantee the effective operation of the capital market, China also issued a series of policies and regulations related to the internal control information disclosure of listed companies. In 2006, Shanghai Stock Exchange (2006) and Shenzhen Stock Exchange (2006) issued Control Guidelines for the Listed Companies which clearly require that listed companies should prepare internal control self-assessment report based on the released details about internal control. In 2008, the Ministry of Finance (2008) and five other ministries jointly issued The Basic Norms of Internal Control in Companies. specification is based on the US Sarbanes-Oxley Act, requiring that the listed compa- nies should issue internal control self-assessment report to determine whether the internal control is implemented effectively. Ministry of Finance and five other ministries in 2010 issued the three guidelines with relevance to internal control of listed companies, marking the transition of the internal control information disclosure in China from the voluntary disclosure phase to the mandatory disclosure phase.

Disclosure of Internal Control Based on XBRL

This article is mainly to study on the necessity of implementing the internal control, and proposed some solutions to address the development of the internal control.First,We described the problem of implementation "basic norms of internal control";secondly, We proposed a new solution named XBRL for the disclosure of internal control information, and then we did some empirical research on the application of XBRL in China,The research showed that XBRL had improved the quality of corporate disclosure.

Corporate Characteristics and Internal Control Information Disclosure- Evidence from Annual Reports in 2009 of Listed Companies in Shenzhen Stock Exchange

Abstract Under the research framework of internal control disclosure and combined the current economic situation, the paper empirically analyzes the relationship between corporate characteristics and internal control information disclosure. The paper selects 647 A share companies listed in Shenzhen Stock Exchanges in 2009 as a sample. The results show: (1) the companies with excellent performance and high liquidity tend to disclose more internal control information; (2) the companies with the high leverage and also issued B shares are not willing to disclosure internal control information; (3) the companies sizes and companies which have hired Four-big accounting firms have no significant effects on internal control disclosure.

A Research on the Internal Control Information’s Disclosure of Signal Game Model of the Listed Companies

This paper studied the game theory about that the listed companies used internal control disclosure as signal under the condition of incomplete information, constructed a signal game model to analyze the internal control information disclosure problem under the condition of incomplete information. It also proposed some policy Suggestions to inspire the listed companies to disclose internal control message veritably.

Analysis of the Relationship between Listed Companies’ Earnings Quality and Internal Control Information Disclosure

This article examines the relationship of earnings quality and internal control disclosure information in the sample of 1273 nonfinancial firms in shanghai and Shenzhen Stock Exchange in 2010. Using multiple regression model, we launch an empirical analysis on the relationship between earnings quality and internal control disclosure information. We find a positive relation between earnings quality and internal control disclosure information. The better the earnings quality is, the higher level of the internal control disclosure information will be. This provides a theoretical support to perfect our system of internal control disclosure of information, and to reduce the occurrence of financial fraud.

The Empirical Study on Factors Influencing the Disclosure of Internal Control Information of Listed Companies

The internal control is an important means to realize the purpose of organizations, however, the effectiveness of internal control depends on not only the design, more important, but its rationality, completion and effectiveness of operation. The disclosure of internal control information is usually a way of examining the effectiveness of internal control’s operation for management and evaluating the company’s operational condition and forecasting its development foreground for external stakeholders. Due to the lack of unified standards for disclosure of internal control information, the obscurity of responsibility, centralization of ownership and some others, the disclosure of internal control did not implement effectively. Based on the data of the 19 listed companies of real estate companies during 2007-2009, the article analyzes the influence of equity structure, sales growth, financial leverage, net assets yield, and audit opinion on financial report, enterprise scale, total asset turnover and current ratio to the disclosure of internal control information. It applies the principal component analysis (PCA) and multivariate linear regression