China's Financial Sector Corporate Governance Disclosure

Corporate governance and information disclosure are main elements of the modern enterprise research, which also receive more attention of academic interests. There are a lot of researches about corporate governance or information disclosure at home or abroad, and almost no research on their interaction relationship connects their together. Just as information disclosure, previous research focuses on financial information disclosure, the research of non-financial information, especially information disclosure of corporate governance, is even less. However, with the development of capital market and the level of investors, the importance of corporate governance information on revealing company quality gradually appears, and it gets even more attention than the financial information. Finance is the core of modern economy; it also is the artery of all the market economic system. As a high-risk industry, financial industry's corporate governance and information disclosure have more important influence than any other industries. But in recent years, the phenomenon of financial company illegal operation is frequent, the reason is that financial company management exist deficiencies, and information disclosure is not transparent. Therefore, this paper studies on financial industry's corporate governance information disclosure has theoretical and practical significance.Firstly, this paper defines the concept of corporate governance, information disclosure and corporate governance information disclosure, explains the signal transmission theory and agency theory, and indicates the relation between corporate governance and corporate governance information disclosure:corporate governance offers supply and demand of corporate governance information disclosure, corporate governance information disclosure ensure corporate governance effective operated. And then, this paper introduce the research about the situation of corporate governance information disclosure, influence factors of corporate governance information disclosure and the situation of financial industry's corporate governance information disclosure at home or abroad, and sort them. Afterwards, this paper analyses the current situation and existing problems of China's financial corporate governance and corporate governance disclosure.On the basis of theoretical analysis, this paper constructs a set of index about financial industry's corporate governance information disclosure, including Equity change and shareholders, directors, supervisors, executives and staff, corporate governance structure, shareholders conference, report of the directors, report of the supervisors, etc. This paper selects the financial companies (including commercial Banks, insurance companies and securities and trust companies) both list on Shanghai and Shenzhen stock exchanges from 2007 to 2009 as research object, scores for its corporate governance disclosure level According to the indexes. and gets a conclusion that financial industry's corporate governance information disclosure has a high level. And then, this paper selects six explanatory variables about corporate governance structure and corporate characteristic, they are the proportion of state owner ship, the proportion of share-holding directors, the existence of dominant personalities, the set of audit committee, net assets yield and the company's total assets, and do research on their influence degree for financial industry's corporate governance information disclosure index. In the process of empirical research, first, make descriptive statistics about explanatory variables and be explained variables; second, make correlation analysis about explanatory variables and be explained variables; at last, make regression analysis using least-square method. According to empirical research, financial industry's corporate governance information disclosure index is positive related to company size and profitability, negative related to the proportion of state ownership, and has no relationship with the proportion of share-holding directors, the existence of dominant personalities and the set of audit committee.Finally, according to the empirical study results, this paper proposes in two aspects:improving financial industry's corporate governance mechanism and promoting financial industry's corporate governance information disclosure. Encourage state-owned shares lower, optimize the structure of financial stake, give full play to the role of independent directors, chairman and managing Director of financial company are of two sub-post office, establish and improve audit committee system, strengthen external supervision, perfect market legislation monitoring system, promote the development of information industry, encourage financial company listed on voluntary disclosure, regulate the reporting process, guide the investors to establish correct investment concept, cultivate a competition system for product market.