Market Effect on the Voluntary Disclosure of Internal Control Information Due to Different Mercerization Degree
With the aging of stock market gradually, the role of internal control information has been increasing .Against such a background, the evidence about whether the internal control information provided was recognized will have significant policy implication. Using public companies of three regions listed in Shanghai Stock Exchange as a research sample, this paper tested the market effect on the voluntary disclosure of internal control information based on different mercerization degree. Research results show that the listed companies located in high mercerization regions have bigger changing hands rate after disclosing internal control information voluntarily, but have no significant effect to annual average volatility and risk priority number. The result suggests that mercerization degree could affect the investors’ recognition of voluntary disclosure about internal control information.
Keywordsmercerization degree internal control information voluntary disclosure market effect
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