The Social Networks Of Executives And Corporate’s Information Disclosure In China

The influence of social networks in economic activities is a hot topic, both in domestic and on abroad in recent years. Domestic research starts late and the range is narrow. At the same time, the topic of information disclosure has attracted extensive attention and discussion. In China There is still serious insider trading and the factors influence on information disclosure in recent research include regulatory environment, ownership characteristics, timeliness and so on. There is no direct study that domestic social networks of executives contact with the information disclosure. Therefore, the social networks under the background of China’s "human" culture has significance research meaning. The networks are kind of way as information transmission and whether it will affect the level of the company’s information disclosure is a topic that is worth to be considered.In view of the above question, this article combines method of theoretical research and empirical research on this issue. According to the social networks theory, the strong and weak ties theory, social capital and resource theory, structural hole theory and related empirical results, in economic activities, social networks’ functions include transmission of information, access to resources, build trust and so on. Of course, the spread of information communication will also cause the company’s insider information disclosure. This article put forward nine hypotheses about information disclosure and executives’social networks, which is related to the three main aspects. They are executives’horizontal social networks, vertical networks and other networks. In this paper, we choose listing corporation of the manufacturing industry in2012as samples. Through a series collation and screening, there is179samples finally. The size of company, executive compensation and other variables are control variables. We obtain proxy variables of company’s information disclosure through event research method. With Stata12.0, there are empirical tests between executives’social networks and company’s information disclosure. The results of this study show that:(1) the stronger the horizontal social networks of executives, more related people in executives’ work experience and have the financial sector’s work experience, the more serious information disclosure of the company, and the disclosure of information, accuracy is higher;(2) the level of information disclosure and horizon networks of executives are independent; (3) There is a promotion function between the number of related people of executives and the experience in finance industry to the level of information disclosure and the accuracy of the information;(4) the level of information disclosure and community networks of executives are irrelevant; the relationship between education networks, the origin networks and the company’s information disclosure can be validated in the future.This paper innovatively builds the bridge between social networks and information disclosure of firms, in the background of Chinese culture, and clarified the horizontal networks has positive effect on company information disclosure, which expand and enrich the related research and theoretical systems of social networks and information disclosure. The paper can remind the regulators and the public when the social networks plays a positive role in the some economic activities, it also have negative effect. The social networks is a factor on information disclosure of firms. This paper provides some ideas to strengthen the regulatory and ethical requirements.