The Influence Mechanism and Heterogeneity Analysis of Internal Control Quality on Corporate Accounting Information Transparency

Abstract

Addressing the practical issues of accounting information distortion and insufficient transparency in capital markets that constrain pricing efficiency, this study elucidates the mechanism and heterogeneous characteristics of internal control quality on corporate accounting information transparency. Using A-share listed companies from 2018 to 2023 as samples, we examined the causal relationship through a fixed-effects model, identified the transmission path using a mediation effect model, and conducted heterogeneity analysis via grouped regression. The results demonstrate that high-quality internal controls significantly enhance corporate accounting information transparency—a conclusion validated by endogeneity and robustness tests. The core transmission path involves curbing earnings management, reducing agency costs, and improving information disclosure quality, with the mediation effect of earnings management suppression being the strongest. This positive effect is particularly pronounced in non-state-owned enterprises, regions with high marketization levels, and small-to-medium-sized enterprises. The study provides empirical evidence for companies to optimize their internal control systems and for regulators to refine information disclosure regulations.