A Study On Influence Of Board Of Directors Characteristics On Quality Of Information Disclosure In Chinese Small And Medium-sized Listed Companies

The high quality of information disclosure is to ensure the effective of corporategovernance. In recent years, with the rapid development of Chinese small and medium-sizedlisted companies, board governance has appeared many problems. From April to August in2011, more than150executive announced their resignations, including six chairmen of theboard of directors and seventy-four directors. From December in2012to May in2013, majorshareholders had cashed a total of33billion RMB, including many directors in small andmedium-sized listed companies. On March6in2013, the Social Sciences Research Center ofCorporate Governance and “The Entrepreneur” magazine have joint research, and it showsthat in the indicators of the overall corporate governance, growth enterprise market is betterthan small and medium-size enterprise, including the indicator of the board operation. But, theboard as the core part of the corporate governance structure has the responsibility to supervisethe quality of information disclosure.So, it is worth studying which board characteristics would enhance the quality ofinformation disclosure. In this paper, from the perspective of investors, I will study theinfluence of board of directors characteristics on quality of information disclosure in Chinesesmall and medium-sized listed companies. It has the important theoretical and practicalsignificance.This paper draws on existing research results and analyzes the current situation about theinfluence of board of directors characteristics on quality of information disclosure in Chinesesmall and medium-sized listed companies. Based on the principal-agent theory、signalingtheory and shareholder governance theory, I have come up with four hypotheses and built thelogistic model. The two years’ sample from2011to2012in Shenzhen Stock Exchange hasbeen collected to find the relationship between board of directors characteristics and quality ofinformation disclosure in Chinese small and medium-sized listed companies. The findings ofthe paper as follows:(1)Proportion of independent directors and quality of information disclosure do not havethe significant relationship;(2)Board shareholding ratio and quality of information disclosure have the negativecorrelation below5%level of significance;(3)The separation between chairman of the board of directors and general manager do nothave the significant relationship; (4) The number of board meeting and quality of information disclosure have the negativecorrelation below1%level of significance.The study has the following meanings:(1)In this paper, I study the relation between the board of directors characteristics andquality of information disclosure in Chinese small and medium-sized listed companies. Itadds the relevant research about board of directors characteristics on quality of informationdisclosure in Chinese small and medium-sized listed companies.(2)To some extent, the research findings can be used for supervisor board to strengthen thesupervision and small and medium-sized listed companies to improve their board and qualityof information disclosure.