| Voluntary information disclosure helps reducing the level of informationasymmetry, protecting investors’ interests, and enhancing corporate value, only if theinformation can be transmitted efficiently in the market. Stock price variance is anintuitive market reaction which can be measured. This paper analyzes the relationshipbetween voluntary information and stock price, attempts to validate the effectivenessof voluntary information transition in the capital market. Compare the marketresponses to different types of voluntary information, the give advice to listedcompany’s voluntary information disclosure policy.Answer the following three questions: Can voluntary information be transmittedeffectively on China’s capital market? Are there any differences between thetransmissions of all subdivided voluntary information? If there exists differences, whatare the causes of those differences?In theoretical analysis, based on contract theory, signaling theory, combined withthe efficient market hypothesis and information view, summed a influence path:voluntary information is more helpful for decision-making which induce demand forequity, then stimulate prices. In the empirical study, use multiple regression to analysisthe correlation between voluntary disclosure and stock prices. Use the event studymethod, divide sample into "good" and "bad" groups, analysis the difference of stockprice variance between them.Results show that voluntary information can be delivered effectively. There existdifferences between types of subdivided voluntary information’s correlation with stockprice. According to the results, listed companies should increase the overall level ofvoluntary disclosure, and modify the content of voluntary information. |
