The Research On The Relationship Between The Enthusiasm Of Disclosures Of Company’s Annual Financial Report And The Operating Conditions Of The Company Under The View Of The Company’s Growth

With the capital market increasingly maturing and laws and regulationsincreasingly improved, the management is becoming active prior to the release ofinformation instead of being forced to release information. Because the Chinesegovernment restricts the time of disclosure of the annual financial report, this studyfocuses on the enthusiasm of disclosures of company’s annual financial report.Considering the companies lying in the different stage, the management is facingdifferent level of pressure, this study focuses on the relationship between theenthusiasm of disclosures of company’s annual financial report and the operatingconditions of the company under the view of the company’s growth. This paperstudies the data listed companies from1998to2012to explore the relationshipamong the enthusiasm of disclosures of company’s annual financial report, thegrowth of the company and the company’s internal situation. In this paper，the initialsample of27，105companies’ years are obtained and removed by filtering thesample of financial institutions，companies and other companies in the sample ST toget in a final sample of18，250companies’ years. Through correlation analysis，linear regression method we study on18，250companies’ years in the sampleobtained. In this paper，the research found that the enthusiasm of disclosures ofcompany’s annual financial report is affected by the company’s growth，the size ofthe company，the company’s operating capacity，the company’s profitability，market expectations and the company’s cash flow，etc.. When there is a positivegrowth of the company，with the higher and higher anticipation of the investors for thegrowth, the enthusiasm of disclosures of company’s annual financial report will bereduced，on the contrary，the enthusiasm of disclosures of company’s annualfinancial report will be increased； when market expectations gets higher，theenthusiasm of disclosures of company’s annual financial report gets weaker，on the contrary，the enthusiasm of disclosures of company’s annual financial report getsstronger； When the company’s profitability gets stronger，the enthusiasm ofdisclosures of company’s annual financial report gets stronger，on the contrary，theenthusiasm of disclosures of company’s annual financial report gets weaker；When the size of the company gets lager，the enthusiasm of disclosures ofcompany’s annual financial report gets weaker，on the contrary，t the enthusiasm ofdisclosures of company’s annual financial report gets stronger； when the thecompany’s operating capacity gets stronger，the enthusiasm of disclosures ofcompany’s annual financial report gets stronger，on the contrary，the enthusiasm ofdisclosures of company’s annual financial report gets weaker； when the cash flowgets greater，the enthusiasm of disclosures of company’s annual financial report getsstronger，on the contrary，the enthusiasm of disclosures of company’s annualfinancial report gets weaker. Through the study we found that Chinese listedcompanies follow the principle of "good news early，bad news late"，and there ispossibility of the management of Chinese listed companies maximizing their benefitsby adjusting the actual disclosure of the date of the annual financial report to releasethe appropriate message，which is due to the business and financial condition ofChinese listed company will be disclosed in the annual financial report and themanagement of Chinese listed companies have an incentive to behave in accordancewith Chinese listed companies and financial situation by adjusting their disclosure offinancial reports behavior，in particular the disclosure’s time of financial reporting.This study also found that the presence of growth of the Chinese listed companymakes the management of the company be more inclined to be disclosed in theannual financial report as soon as possible. So investors may be acknowledged thetrue quality of financial reporting information by the enthusiasm of disclosures ofcompany’s annual financial report，and take the stage of the company into account tofurther speculate that the pressure on management，to discriminate the truth of thefinancial reporting information to find out if the information represents company’soperations and financial condition truly，trying to reduce the degree of asymmetry of information within and outside the company，so that investors can make betterdecisions； The government can relax the restrictions of the disclosure date of theannual financial report to a certain extent，to reduce the pressure of the managementfor the deadline of the annual financial report distorting and manipulating thefinancial information，and reduce the pressure，which is not from the operating andfinancial conditions of the company，of the management to reduce their incentive tomanipulate and distort the company’s management of financial reporting accountinginformation.