Analysis of disclosure of internal control information from Chinese listed companies -- Data from cross listing companies

Abstract

Purpose – The aim of this research is to examine internal control disclosures by Chinese cross-listed companies relating to guidelines issued by the government. All Chinese cross listed companies are required to disclose internal control evaluation reports in accordance with Internal Control Basic Standards and its supporting guidelines from 2011.

Design/methodology/approach – This research uses descriptive statistics method to analyses the internal control reports of Chinese cross listed companies.

Findings – This paper finds that, in general, Chinese cross listed companies have disclosed internal control information according to the regulations. However, the analysis also shows that there is some inconsistency in the application of the guidance, especially disclosures relating to internal control deficiencies, identification criteria and improvement procedures.

Originality/value – This study aims to contribute to internal control information disclosure research from Chinese cross listed companies perspective. In addition, this study offers suggestions on how the regulations can be improved which is another contribution of this study