The Study On The Improvement Of Financial Report Of Listed Company Based On Minority Shareholders

Abstract Financial report of listed company is the most important way of communication between the company and stakeholders (including shareholders, creditors, government, potential investors and social public). It supplies related information to help the users evaluate the risk of the listed company and make their investment decisions. If all of the market participants can get related and reliable information from the listed companies, the idle money can flow into the companies who can use them effectively, so the whole economy can create more social wealth. It shows that the validity of modern capital market depends on the high quality financial reports supplied by the companies.The development of financial report depends on the economic environment of certain period, so the financial report model also develops along with the change of economic environment. As the development of economy and advent of information age, more and more social public join investment of capital market. The financial report can not satisfies the information demands of so many stakeholders. At the same time, the traditional current finance report has hysteretic nature on both basic theory and practical application. The quantity, quality and way of disclosure about information the financial report supplied have expose many defects, the improvement of financial report system is stared in the face.As the important participators of capital market, minority shareholders improve not only the construction of our financial market, but also activity of capital market. However, because of information asymmetry, minority shareholders are always in the dry tree. They can not control the listed companies effectively because of the limit of investment proportion. Their profits are injured by the large shareholders that controls the companies. That dampens minority shareholders' enthusiasm badly. This thesis study of the information demands of minority shareholders based on the financial report, in order to improve current finance report system and supply financial information and business information to improve their inferior position, protect minority shareholders' profit reasonably and promote the development of capital market healthfully and harmoniously.