Study Of The Effects Accounting Information Transparency Upon The Company’s Performance

There is a significant impact on accounting information quality upon investor’s decisions.Accounting information transparency is the basic guarantee of securities market’s healthydevelopment. The phenomenon of Financial scandals due to accounting information opacity,which not only caused investors’ huge losses, damaging the confidence of investment in thestock market, influencing investor’s investment enthusiasm and attitude; but also damaged thesecurities market’s order, threaded securities market’s survival and development, theninfluenced the function of securities market in allocation of resources optimization. There aremany at home or abroad scholars have research the effects accounting informationtransparency upon the company’s performance, but the accounting information transparency’smeasure method has not been unified. It is very necessary to use more systematic, morenormative method to study this issue.Based on the effective capital market hypothesis theory, principal-agent theory andsignaling theory, selected362A-share listed companies three years’ dates from2009to2011as sample, then using principal component analysis and linear regression method, to studythe effects accounting information transparency upon the company ’s performance. Thecompanies whose accounting information is higher transparent, will delivery the company’sinformation to investors timely and effectively, to reduce the suspicion of investors aboutinsider trading and manipulation surplus, finally enhance the confidence of investors upon themanagers. The companies who have higher information transparency will reduce the cost offinancing. Improving the transparency of information, could strengthen communicationbetween the owner and the operator, keep the information flow, and reduce the cost ofinvestors’ supervision. Because of information transparency strengthen supervision tomanagers invisibly, complete the governance structure of the company gradually. Upon theefficient market hypothesis, for the companies, fully disclose relevant, reliable and timelyfinancial information, improve the transparency of information, that will made the investors toform rational expectations conveniently, but also improve the effective of market, reduce thecost of information transfer and the cost of supervision, thus improve the company’s operatingperformance to some extent. Finally come to the conclusion of the article, improving thetransparency of accounting information is helpful to improve the performance of thecompany’s operating.Include two innovations. Firstly article increased a control variable of supervisor board proportion. Secondly the article selected two corporate accounting information transparency’salternative indicators. To Using the Shenzhen Stock Exchange on accounting informationdisclosure rating index and the proportion of voluntary information disclosure as the twoalternative indicators of information transparency. The credit rating of the Shenzhen StockExchange index represents mandatory disclosure of accounting information transparency andthe proportion of voluntary information disclosure represents the voluntary disclosure ofaccounting information transparency.