Abstract:Based on the accrual anomaly perspective, using the data of A-share listed companies from 2012 to 2020, the impact of internal control defects disclosure on the pricing efficiency of accounting information is studied in depth. The results show that internal control weakness disclosure can significantly mitigate the accrual anomaly in the A-share market. Further decomposition of accrual earning finds that internal control weakness disclosure mitigates the accrual anomaly caused by investment growth, has a non-significant effect on the exacerbation of accrual anomaly caused by earning management, and exhibits an overall mitigating effect. Mechanism tests find that the supervisory governance effect of internal control weakness disclosure plays a major role in improving governance and mitigating accrual anomalies, and that internal control weakness disclosure in high-industry weakens both, but that the stringency of the internal control regulatory environment strengthens the relationship, and that the disclosure of defect rectification information fails to cause a change in the relationship.