Topic：Voluntary Disclosure of Audit Attestation on Internal Control: Evidence from China
Presenter：Qian Sun, professor in finance, head of Finance Department, Fudan University
Time：April 19, 2012（Thursday）2:00-3:30pm
Venue：Room 501, Jiageng Bld 2
Abstract：
We examine what motivates a firm to voluntarily disclose its self-assessment on internal control (IC) and further have an audit attestation on this management report using a sample of China’s publicly traded firms during 2006-2010. We find that the likelihood to have voluntary disclosure of IC self-assessment with audit attestation is positively related to the future equity refinancing, the institutional (especially mutual fund) shareholdings, and whether the firm is controlled by the central government. Our study also takes the identification problem into consideration as our sample includes firms with IC weaknesses/deficiencies. Our study not only contributes incrementally to the literature but also has practical implications, especially to regulators and investors.