An Empirical Study On Effect Of Corporate Governance Upon Transparency Of Listed Companies Of China

More and more countries have taken transparency as the criterion on the efficiency of corporate governance, and try to improve corporate transparency. China was still confronted with this problem. Low transparency level of fisted-company is a question of the information discloses system. Some listed-company information even disclose fake information, seriously has disturbed the development of stock market.The quality of information discloses is determined by the structure of company governance which includes exterior governance mechanism and internal governance structure. Company governance is helpful to enhance the company information transparency, eliminates asymmetric information in the Insider and outsider. Share merger reform will have the huge influence to our country company governance structure. But because the legal system consummation and the implementation effect improvement will need a long-term process, at present our country property rights high degree of concentration reality cannot obtain the change in the short-term. So it is especially importantly to strengthen the consummation information discloses the system and enhance the information transparency this time.The paper is composed of mainly 6 sections. Firstly, the paper brings forward the background and significance of the subject. Secondly, I sum up, compare and analyze studies about transparency by scholars abroad and at home which can be considered as the foundation of my research and foreign related theories. The third part is present situation analysis of governance structure as well as the transparency to our country company. Furthermore, the paper states definition of transparency and corporate governance, and analyzes the influence of corporate governance on transparency theoretically. Finally is empirical evidence research of the relationship of interior government structure and information transparency. And data are from finance report of 129 listed companies in Petrochemical plastics industry which only have A-shares on either Shanghai or Shenzhen Stock Exchange. Then a linear multiple regression equation is established to test the conjecture. The result indicates that controlling ownership identity, stock concentration, the proportion of independent directors relate notably to transparency positively, The proportion of the outstanding shares of a negative correlation with the level of information transparency .The correlation between other independent variables and dependent variable is insignificant.