Author(s)

Cheng Ya, Luo Huawei, Jiang Lijia

Corresponding Author

Luo Huawei

Abstract

Internal control evaluation report is a very important information that enterprises publish to the public which will provide investors with investment reference information so that they can make correct choices. Institutional investors play very irreplaceable roles in the capital market, therefor, the institutional investor is exampled as the representative of all investors in this article. In recent years, the real estate industry has developed rapidly in China which is in strict government regulation. Consequently, A-share real estate industry in Shenzhen and Shanghai Stock Exchanges are chosen as the research object to analyze the impact of information content of internal control flaws disclosure on the share proportion of institutional investors. The following conclusions are from empirical analysis in this article: there is a positive correlation between the disclosure of internal control information and the proportion of institutional investors in enterprises. The disclosure of internal control information has a significant impact on the proportion of institutional investors in private enterprises.

Keywords

Disclosure of internal control information; institutional investors; the proportion of share