The Relationship Between CEO’s Characteristics And Illegal Information Disclosure

China’s securities market has opened up a new finance and investment channel for urban and rural residents, and also centralized idle funds and change long-term investment risk into short-term investment risk. China’s securities market can promote China’s economy to the optimal allocation of resource, facilitate the capital supplier and purchaser contact, opened up a vast investment and financing way for both sides. At the same time, It promotes the economic growth and improves the economic efficiency.Now investors have a more profound understanding of the securities market, more and more investors understand the enterprise’s financial condition, operating results and cash flows. They make relevant decisions,basing on the financial information disclosure of listed. However, the listed companies’ financial illegal information disclosure emerges endlessly, such as seriously misleading statements, out-dated disclosure of information, false statement, incomplete disclosure. The illegal information disclosure is prejudicing the credibility of the listed company, disrupting the integrity of the securities market mechanism, eroding the legitimate interests of the investors.Illegal information disclosure, catches scholars’ eyes at home and abroad.However, domestic scholars had made a series of research on Violation of listed companies in China, mostly from the corporate governance. After literature review, this paper holds that relationship between administrator’s characteristics and illegal information disclosure should not be ignored. Illegal information disclosure is a kind of company level irregularity, which has a especially widely and bad influence. We should highlight illegal information disclosure. Now second revised "securities law" is coming, the discussion of the listed company illegal information disclosure is very realistic.The main contribution of this paper is:(1) The perspective is relatively new. Considering the executives as initiative managers, this paper researches the relationship between executives personal characteristics and illegal information disclosure, which is a kind of Corporate Fraud and always has bad influence.(2)Adding CEO characteristics factors into the model,Strengthen the model explanation.(3)The paper pays attention to CEO’stenure of the background characteristics.Basing on Upper Echelons Theory and Leadership Theory, CEO’s background characteristic reflects the psychological characteristics of the CEO and the differences between individuals, and also has good scalability and simplicity. This paper makes a comparative analysis on the relationship between the CEO’s background characteristics and illegal information disclosure, with Upper Echelons Theory and the Fraud Triangle. This paper collects illegal information disclosure of 2010-2013 China’s A-share listed companies as sample, then match it. At last, this paper selects listed company CEO’s background characteristics as the substitutive variables of CEO’s the psychological characteristics, like gender, age, education, tenure. This paper uses Logistic regression to study the CEO’s background characteristics and the correlation between information disclosure violations. The results show:(1)the listed company CEO’s gender has a significant impact on information disclosure violations. Female CEO commits information disclosure violations is of small probability and less serious.(2)There is a U-shaped relationship between CEO’s tenure and information disclosure violations. CEO commits information disclosure violations is of bigger probability and of more severity in early and late term, than in mid-term.(3)the relationship between CEO’s age and information disclosure violations is not significant, neither is education.(4)(4)This paper further study found that male CEO tend to commit delay disclosure and false disclosure. In the early and the late stage of the CEO tenure, delay disclosure and omission is more likely.Then, this paper tests the stability of results, and the conclusions are:(1)the lower proportion of female managers in management team leads to the greater the probability of company’s illegal information disclosure and bigger severity of the illegal information disclosure. But the significance is not very well.(2)Team’s tenure was also U-shaped relationship and illegal information disclosure, but the significance is not very well. Finally, according to conclusions, this paper gives some suggestions from two aspects of talent selection of listed companies and Securities regulation.