Study on Industrial Heterogeneity of Internal Control Defects Identification Standards in Listed Companies

JOURNAL OF CONTEMPORARY FINANCE AND ECONOMICS ›› 2018, Vol. 0 ›› Issue (1): 158-168.

Study on Industrial Heterogeneity of Internal Control Defects Identification Standards in Listed Companies

YANG Jing, ZHENG Shiqiao

Nanjing Audit University, Nanjing, 211815, China

Online:2018-01-15 Published:2021-09-29
About author:Yang Jing, lecturer of Nanjing Audit University, is mainly engaged in theoretic research on audit and internal control, email: weishengsu_12345@126.com; Zheng Shiqiao, professor and doctoral supervisor of Nanjing Audit University, is mainly engaged in theoretic research on audit and internal control.

Abstract

Abstract: Taking the listed companies of Shanghai Stock Exchange in 2015 as the subject of research, the paper examines the industrial heterogeneity of internal control defects identification standards and the impact of industrial characteristics on the standards. The research shows that listed companies' internal control defects identification standards vary generally among industrial categories, the subcategories of the manufacturing industry show no significant difference in internal control defects identification standards in listed companies, and that highly competitive industries tend to have stricter internal control defects identification standards. In the stage where enterprises are entitled with the discretion for internal control defects identification standards and the external regulation is weak, industrial characteristics play an important role in restricting opportunistic behaviors of internal control defects identification. The regulatory authority should not only refine internal control operation guidance, but also implement differentiated supervision based on characteristics of specific industries, so as to optimize the internal control information disclosure of listed companies.

Key words: internal control, defect identification, industrial characteristics, heterogeneity

YANG Jing, ZHENG Shiqiao. Study on Industrial Heterogeneity of Internal Control Defects Identification Standards in Listed Companies[J]. JOURNAL OF CONTEMPORARY FINANCE AND ECONOMICS, 2018, 0(1): 158-168.

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