This study focuses on the problems of imperfect internal control effectiveness, insufficient information transparency, and plummeting stock prices. The study selects the data of non-financial main board listed companies in China’s Shanghai and Shenzhen A-shares from 2012 to 2021 as a sample, and adopts an empirical research methodology, which reveals that the effectiveness of internal control is negatively related to the trend of share price crash, and efficient internal control is positively related to the transparency of corporate information environment. The findings suggest the impact of internal control on the risk of stock price crash at the individual stock level and provide empirical support for listed companies to manage their risks. This study has practical value in guiding listed companies to strengthen internal control, improve information transparency, mitigate the risk of stock price crashes, and provide a decision-making basis for the healthy and stable development of the capital market.

Information transparency is a basic principle of good governance that few studies in the literature have thoroughly examined. Riau Province in particular has a high record of land and forest conflicts that needs urgent response, yet environmental policies have mostly been scrutinized for its resource extraction and regulation aspects, not their aspect of information transparency. Low proactive disclosure of information from local governments is a recurring issue in Riau Province, so FITRA Riau initiated the Public Information Openness Index (IKIP) to cover the Riau Province and 12 regencies/cities. To address this research gap of governmental public bodies’ information transparency, this study conducted the novel substantive approach critical review to see the extent of local government’s transparency regarding their budgeting for one of Riau’s most prevalent issues, namely land and forest governance (TKHL). From March to September 2019, this study used a triangulation of data collected from information access tests, IKIP evaluation, and focus group discussion involving the Riau Information Commission, the Information Management and Documentation Officers (PPID) of the 12 regencies, and the Governor of Riau Province. After analyzing the four aspects of regulation, institution, budget, and TKHL information, results determined that the most open region in Riau Province is Indragiri Hulu, and the least open region is Kuantan Singingi. Information transparency is still limited in procedural terms, in which all regions have more or less fulfilled the administrative regulation demands but the substance of the public information across all aspects is too generic to truly inform the public of the regions’ TKHL.