Internal Control Evaluation, Investors' Perception of the Information Reliability and Investment Decision

In this paper, we used experiment research method and investigated the effects of internal control effectiveness evaluation issued from different subjects and information misstatement risk level on the investors' perceived reliability of financial information. The results show that the investors' perceived financial information reliability is the highest when the opinion of internal control effectiveness is issued by CPAs, and it is higher when the opinion is issued by independent directors and it is the lowest when the opinion is issued by the manager, but this is true only when the enterprise information misstatement risk is high. When the information misstatement risk is low, investors' perceived reliability of the information is not different among the above three bodies' evaluation opinions. It is also found that the investors' perceived financial information reliability mediates the relationship between internal control evaluation opinions and investment possibilities.