Work

How Corporate Governance Shapes the Relationship Between Internal Control and Information Disclosure

Year: 2025

Type: article

Abstract: We investigate the relationship between internal control, corporate governance, and the quality of accounting information disclosure, companies listed on the main board in mainland China from 2015 to 2019. Using principal component analysis, ordered logistic regression, and other methods, combined with data collected from relevant databases and stock exchange websites, the relationship between internal control, corporate governance, and the quality of accounting information disclosure is explored. The findings are as follows: First, there is a positive correlation between internal control and the quality of accounting information disclosure. Second, corporate governance and executive shareholding can enhance the positive impact of internal control on the quality of accounting disclosure; however, a higher degree of equity checks and balances can weaken the positive effect of internal control on the quality of accounting disclosure. Third, in state-owned enterprises, a higher proportion of independent directors diminishes the positive correlation between internal control and the quality of accounting information disclosure. Through empirical research, this paper aims to provide recommendations for improving the quality of accounting information disclosure and contribute to the betterment of the capital market environment. Received: 3 November 2024 | Revised: 7 March 2025 | Accepted: 26 May 2025 Conflicts of Interest The author declares that they have no conflicts of interest to this work. Data Availability Statement The data that support this work are available upon reasonable request to the corresponding author. Author Contribution Statement Meng Yuan: Conceptualization, Methodology, Software, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing. Xinyu Hu: Validation, Investigation, Writing – review & editing, Visualization. Linggang Zeng: Resources, Supervision, Project administration, Funding acquisition.

Source: Journal of Comprehensive Business Administration Research

DOI: 10.47852/bonviewjcbar52024717

Authors: Meng Yuan, Xinyu Hu, Linggang Zeng

Institutions: Chengdu Neusoft University, Southwestern University of Finance and Economics

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Funders: Southwest University, Fundamental Research Funds for the Central Universities