Research on the Information Disclosure of Internal Control for China’s Listed Banks
|School||Southwestern University of Finance and Economics|
|Keywords||Listed Banks Internal Control Information Disclosure Affecting Factors|
In2008, the U.S. subprime mortgage crisis sweeped the globe and triggered the global financial crisis, leading to the collapse of many banks including the century-old Lehman Brothers. The crisis make people re-examine the banking system. they find that the occurrence of the crisis is related to the bank’s internal management control and regulatory authorities. In2012, many banks in the Europe and the United States arrise scandal. These events once again warn that banks still imperfect the weak of the system of internal control and supervision. Efficiented and sustainable corporate governance requires a sound internal control system, but also needs the information disclosure of internal control. Listed banks have high risk and more need the sound and effective information disclosure of internal control. The listed bank’s disclosure of Internal control information not only promote the bank authorities to measure the effect of the implementation of the internal control system and correct deficiencies in internal control, but also for the interests of depositors, investors, regulatory agencies, and other external information provide the bank’s information about internal control to improve the effectiveness of decision-making.China’s listed banks’internal control disclosure of information that should satisfy the requirements of internal control information disclosure of listed companies, but also bound to comply with banking laws. Overall, the listing of the bank’s internal control disclosure of information should be taken seriously. It is very necessary for how to further improve China’s listed banks’internal control disclosure of information, the study listed the bank’s internal control information disclosure and internal control information disclosure factors. Direction to improve China’s listed banks’internal control information disclosure guidelines, to improve the regulatory level, to enhance the effect of the internal control implementation, where this paper research significance.About the internal control information disclosure of listed banks, Chinese scholars mainly research from the perspective of qualitative, starting from the current situation of the internal control information disclosure of listed banks. They found that China’s listed banks’internal control information disclosure of the existence of the problem through internal control disclosure of information in the form, content description, and then put forward policy recommendations. But there is less research about influencing factors for China’s listed banks’internal control information disclosure, and more a lack of research for exploring the impact of factors from a quantitative point of view.In this paper, a combination of qualitative and quantitative method is used to research the internal information disclosure of listed banks. From a qualitative point of view, we analyze the current situation of the internal control information disclosure of listed banks in China, which found the inadequacies of the internal control information disclosure, then analyze the influencing factors of internal control information disclosure of listed banks in China from the perspective of quantitative. We tried to find out the reasons of internal control information disclosure of listed banks, also find the direction of efforts for the listed banks in the improvement of the internal control disclosure of information.The structure of the paper is divided into the following five sections:Part I:Introduction, this section explains the research background, significance, literature review, research, research methods, and its innovation and shortcomings. In the literature review section we review the internal control information disclosure of relevant literature at home and abroad, then summarize, classify and summarize the conclusions of the literature.Part Ⅱ:Overview of the theoretical basis of the internal control information disclosure of listed banks. First, we clear the definition of listed banks’internal control information disclosure, introduce the universal sense of internal control information disclosure of listed banks’internal control information disclosure hierarchically, and make a brief summary of the importance of internal control information disclosure of listed banks. Later, overview the three theoretical basis for internal control information disclosure of listed banks. The three theoretical basis were:principal-agent theory, asymmetric information theory and signal transmission theory.Part III:we analyze the research status and problems of internal control information disclosure of listed banks. This part, in basis of the promulgation of laws and regulations, we introduce the evolution of the internal control information disclosure of listed banks in China. Then make a descriptive analysis of the internal control information disclosure of listed banks in the last three years, described from the internal control disclosure of information carrier, based on content and CPA audit report. At last, according to the analysis of the status quo, it is found that the internal control the differences sufficiently standardized information disclosure, the disclosure of the basis, disclosure of the carrier distribution’s difference.Part IV:Empirical studies of internal control information disclosure of listed banks. This section first is based on the second part of the three theories, giving seven hypotheses, then the sample selection, the selection of variables and the model has been described. Annual data from2007to2011in China’s14listed banks is selected as the sample of the study. Finally, for empirical results and analysis, analyze of sample in quantitative analysis using descriptive statistical methods.Part V:Conclusions and RecommendationsConclusion:the level of listed banks’disclosure of internal control information are constantly improved, but through the analysis we find that there are still problems and the level need to be further improved. Through empirical research, we find that listed banks’disclosure of internal control information is related to the bank size, capital security and governance structures.Policy recommendations:Based on the above analys, this article put forward a four-point proposal about listed banks’disclosure of internal control information. First, strengthen bank capital security construction. Listed banks should focus on the day-to-day risks and concern the changes of some sensitive indicators. Second, improve the listing of bank governance structure. Listed banks should focus on the construction of four committees, so that it fully play its role, but also improve the system of independent directors and improve the level of the Board of Supervisors. The third is to improve the quality of disclosure of internal audit reports. The fourth, improve the external supervision and improve the legal norms. Strengthen the sense of responsibility of the external regulatory personnel, Standardize disclosures and establish effective accountability mechanisms. The innovation of this paper is to select the listed banks’disclosure impact factors of internal control information as an object of study, relatived to previous studies, which more targeted. Llisted banking sector were excluded in the previous studies of influencing factors on the listed company’s disclosure of internal control information. This article select for such important institutions. This paper take the method of combining theoretical research and empirical research. The previous described in the main to the status quo about information disclosure of listed banks’internal control. They lack the empirical analysis about influencing factors of listed banks’disclosure of internal control information.The paper take2007-2011data for the study sample.Relatived to previous studies, the results will be moer reliably. This article has some deficients:In the mandatory disclosure, the listed banks’disclosure of internal control information is not comprehensive enough and is a deviation. The unsufficient reasons have that evaluation of quantitative criteria may differ from actual differences; there might be discrepancies rely heavily on manual data collection; the small number of samples; the impacted factors are’t considered fully. The further study can improve these aspects.