Research On The Effectiveness Of Governmental Regulation About Public Companies Information Disclosure

The governmental regulation was began from the Plan Economy Period, along withEconomic Reform, governmental regulation continuously improved. The effect ofgovernmental regulation is still need the inspection. The author tries to inspection it by theprevious data to provide empirical evidence for the government policy making.The main research of this essay is the effectiveness of governmental regulation for illegalaccounting information disclosed by the public companies. First, the author defined theconcept some words this paper chief involved. Second, with Efficient Markets Hypothesis,Asymmetry Information Theory, Principal-agent Theory and the theory of control or not, theauthor analyses the choice of information disclosure form and expounded on the necessity ofgovernmental regulation. In the empirical study part, with the collect data of publiccompanies punishing for infringement information disclosure from2000to2010, the authoranalyses the effectiveness of the governmental regulation as a whole, then analyses by thedifferent punishment type and different punishment unit.The conclusion is that the governmental regulation is effective as a whole, while thedifferent punishment type and different punishment unit is not always effective, the reasonneed further research. According to those results, the author gives some policy proposal, thethemes department should perfect relevant laws and regulations further to edit, and make surethe different punishment type is definite, so the governmental regulation of public companiesaccounting information disclosure could have laws to abide by, the breakers must beprosecuted and law’s enforcement must be strict to protect investors’ benefits, the stockmarket could be order and healthy.