The Information Disclosure of Internal Control, Market Reaction, and Investor Return

In 2012, China started the construction work of mandatory disclosure of internal control information in listed companies. This study detects the market reaction in the construction period for the classifiable implementation of the internal control standard system since 2012 in China. It was found that the internal control information could trigger a market reaction in the short window period before and after the disclosure date. And the valid information disclosure of internal control raised the possibility of excess returns to investors.