Study On Non-financial Information Disclosure Of Listed Company

In an effort to improve the accounting information disclosure of listed companies, thisarticle studies the non-financial information disclosure of listed companies. Based on thestatus quo of the non-financial information disclosure, the author tries to systematicallyconstruct the disclosure system of non-financial information of listed companies, and alsoelaborates the definition, characteristics, content, methods, and colored approach ofnon-financial information.Firstly, through the literature review, the author analyzes the previous researches onnon-financial information conducted by scholars and academic institutions from differentperspective, but its definition, characteristics, and contents are still in disagreement. With thedevelopment and the complexity of business practices, enterprises encounter greateruncertainty which could bring both risks and opportunities. The financial and non-financialinformation produced in the operation of enterprises are required by different stakeholders,which urges the standardization of the definition, characteristics and contents of non-financialinformation.Secondly, resorting to the shared and specific theories of basic accounting andnon-financial information, the author studies the characteristics, contents, and disclosure ofnon-financial information. By analyzing the definition, the author concludes thatnon-financial information is one component of accounting information; its objective is tosatisfy the different users. By analyzing the disclosure of non-financial informationtheoretically, the author infers that the disclosure of non-financial information should havebroader coverage and take the social responsibility. As the complement of financialinformation, non-financial information refers to the information which is related to productionand operation activities, stakeholders, and non-conforming to accounting standards. It hasdiverse contents, flexible formats, overly high-relevance, and uncertain accountability.Furthermore, it is correlative, overlapping, and auxiliary to financial information. It canimprove the relevance of accounting information, the credibility of the enterprises, and theinternal management. Thirdly, the author explores three the questions of the non-financial informationdisclosure of listed companies in China, there are insufficient, inconsistent andincomprehensive information disclosures. Analyzes the problems and the drivers behind it. InChina, the major problems of the listed companies when releasing non-financial informationare the. Further analyzing both the macro- and micro-economical factors, the authorsconcludes that the incomplete theories on non-financial information, poor supervising of thewatchdogs, poor auditing and monitoring; combined with the segmental view on cost-profit,myopia, deficient corporate governance, the characteristics of non-financial information, andthe conventional objectives of accounting, all influence the non financial informationdisclosure of the listed companies in China.Finally, the author constructs the system of non-financial information disclosure whichcan be divided into five parts: the objectives of disclosure, the principles of disclosure, thecontents of disclosure, the formats of disclosure and the methodologies of disclosure, andproposes several suggestions on standardizing the non-financial information disclosure oflisted companies, such as strengthening the research on non-financial information; improvingthe regulations of non-financial information disclosure of listed companies; improvingself-consciousness non-financial information disclosures of listed companies.