Element Analysis of Management’s Internal Control Deficiencies Disclosure Activity——Based on the View of the Motivated Selectivity in the Internal Control Information Disclosure
ZHAO Xi1, XU Ning-ning1,2
(1.School of Management, Tianjin University, Tianjin 300072, China; 2.Department of Economy and Management, Dezhou University, Dezhou 253023, China)
Abstract：
Based on the financial restated companies during the 2008-2011 in Shenzhen trading market, this paper analyzes the factors that impact on the management behavior in internal control deficiencies disclosure based on the view of the motivated selectivity. It finds out that incentives based on economic and political motivation and expensive explicit and hidden costs from internal control deficiencies disclosure are the driving force to motivate managers to withhold internal control deficiencies information; the weak external governance environment and imperfect internal corporate governance foundation provide opportunities for management’s opportunistic behavior in internal control deficiencies disclosure; the managerial power beyond management’s specific control rights prompts the opportunistic behavior in information disclosure to be achieved. This paper not only helps to standardize the management’s behavior in internal control information disclosure, but also provides a basis for information disclosure regulation.
ZHAO Xi, XU Ning-ning.Element Analysis of Management’s Internal Control Deficiencies Disclosure Activity——Based on the View of the Motivated Selectivity in the Internal Control Information Disclosure[J] Economic Survey, 2014,V31(3): 85-89
2014 
