An Empirical Study On The Factors Affecting Information Disclosure Qualities Of Listed Companies In China

The security market is an information-based market, timely, complete and true information disclosure is the foundation of the healthily-developing security market. The quality of information disclosure directly affects the development of the security market, and only timely, real and complete information disclosure of listed companies can effectively protect the interests of investors. As one of the basic systems of the security market, the improvement of the information disclosure system of the listed companies is of great significance to improve the transparency of the security market. This paper discusses how to improve the quality of information disclosure of listed companies in China concerning the factors affecting the quality of information disclosure.Due to the earlier development of the foreign capital market, foreign study on the listed company’s information disclosure is more systematic and mature, and some scholars put forward far-reaching economic theories, such as Principal-agent Theory, Asymmetric Information & Signaling Theory and Efficient Market Theory. These theories lay the foundation for the research on the quality of information disclosure of listed companies at present. However, China’s capital market started late, the corresponding system construction is not perfect, and there are various problems. Foreign economic theories are not necessarily applicable to the development of China’s security market. The development of China’s security market started late, so there exist some problems. For example, the investor protection system is not perfect, and unique ownership structure, corporate governance mechanism defects. Then can the foreign mature theories explain the Chinese listed company information disclosure behavior? What are the factors that affect the quality of information disclosure of listed companies in China? How to improve the information transparency of China’s security market? Answers to these questions need to be proved through theoretical and empirical analysis.On the basis of present lessons from domestic and foreign research results, this paper analyzes the special capital market system in China, and studies the factors that influence the quality of information disclosure of listed companies. This paper selects main board listed companies in Shenzhen Stock Exchange between 2010 and 2011 as research samples. This paper pays attention to the aspects of companies’ internal factors, firm characteristics, and external audit opinions and tries to get quantitative results through the establishment of Logit model using Eviews and Stata. The empirical analysis found that company size, company profit ability,ownership property,and the quality of the audit have a significant positive correlation with the level of information disclosure; the financial leverage is significantly negatively related to the information disclosure quality. Firm growth’s, independent directors’ proportion and shareholding proportion of the top ten shareholders’ correlations with listed companies’ information disclosure quality don’t pass the significance test.Finally, according to the results of empirical research, the paper puts forward the corresponding policy recommendations to improve China’s listed companies’ information disclosure level, in order to perfect the information disclosure system of the capital market.