On Information Quality And The Investor’s Information Explanatory Capability Effect The Investor Protection

Healthy and orderly development of the securities market is closely related to goodprotection of the rights and interests of investors. In the securities market, the listedcompany information disclosure quality not only can effectively reduce theinformation asymmetry between the investors and transaction costs, but also canprotect the (small and medium-sized) investors is of great significance.This paper based on the information quality theory, investors informationinterpretation theory, and the theory of investors protection effect, based on theperspective of investors, this paper on the basis of the expanding gap model andvolume model, try to explore the information quality and information interpretationability for (small and medium-sized) investors protection effect.Research found that: First, in the market of information asymmetry, the greaterdifference of information interpretation ability between professional investors andnon-professional (small and medium-sized) investors, the greater, the stock trading ismore active, the greater of informational trade probability of happened, the great ofinvestors of bid-ask spread, the less of the protection effects for non-professional(small and medium-sized) investors; Second, in the market of information asymmetry,if the new information disclosure quality is higher, between professional investors andnon-professional investors’ bid-ask spread is reduced, the stronger of the protectioneffects for non-professional (small and medium-sized) investors; Third, in the marketof information asymmetry,(small and medium-sized) investors left their risky assetsto professional personnel for management, which make the interpretation of thepublicly disclosed information ability match for all investors, thus significantly reducethe bid-ask spread between investors, the stronger of the protection effects fornon-professional (small and medium-sized) investors.