Internal Governance Mechanisms, Financial Reporting Quality and Capital Market Economic Consequences: A Case Analysis of Didi and ST Dasheng

Wenrui Ma ()
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Wenrui Ma: Changchun University

A chapter in Proceedings of the 2026 6th International Conference on Enterprise Management and Economic Development (ICEMED 2026), 2026, pp 424-431 from Springer

Abstract: Abstract This paper takes Didi Global Inc. and ST Dasheng as case samples to examine how internal governance mechanisms (internal control, management incentives, digital transformation) affect financial reporting quality and further generate capital market economic consequences. Grounded in principal-agent theory, information asymmetry theory and signaling theory, this study finds that sound internal governance significantly reduces opportunistic behavior, improves the reliability, relevance and timeliness of financial information, and enhances capital market efficiency. By contrast, internal governance defects lead to serious accounting information distortion, regulatory penalties, market value shrinkage, rising financing costs and investor losses. This study integrates internal governance, financial reporting quality and capital market consequences into a unified framework, enriches relevant research in emerging markets, and provides practical guidance for listed companies to strengthen governance and information disclosure.

Keywords: Internal Governance; Internal Control; Financial Reporting Quality; Capital Market Efficiency; Economic Consequences (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-719-4_49

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DOI: 10.2991/978-94-6239-719-4_49

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