Abstract:Based on the perspective of reputation, this paper explores the impact of informal systems on micro corporate behavior. By selecting the data of A share listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2019, this paper analyzes the relationship between corporate reputation and hiding behavior of internal control defects. The research shows that corporate reputation inhibits rather than shelters the management's internal control defect hiding behavior, that is, the higher the corporate reputation, the less internal control defect hiding behavior, and the lower the degree of hiding. Further research shows that, compared with state-owned enterprises, the enterprises with no management shareholding and enterprises in the eastern region, the inhibitory effect of corporate reputation on the internal control defect hiding behavior is more obvious in non-state-owned enterprises, the enterprises with management shareholding and enterprises in the central and western regions. This paper puts corporate reputation and internal control defect hiding into the same research framework, which not only confirms that corporate reputation has the function of governance, but also broadens the research horizon of internal control defect disclosure, which has important theoretical value and practical significance.