Case Study On Equity Governance And Information Disclosure Quality

The securities market has great significance to a country's economic development.Chinese securities market has established a set of relatively complete system from the establishment of growth so far.In the rapid development of the securities market at the same time,with the emergence of the problem cannot be ignored,one of the more noticeable is how to improve the quality of information disclosure issues.From the establishment of the securities market,a variety of information disclosure violations seriously affect the securities market confidence of the information users.In the new century,information disclosure violations are common.From Oriental Electronics and other companies financial fraud in 2000,to a number of listed companies due to information disclosure violations by the Commission investigation and punishment in recent years,an endless stream of information disclosure has seriously affected the healthy and rapid development of the securities market.Ownership structure is the company's property rights,the difference in ownership structure will lead to the differences in company's control structure and power structure.Through the study,many scholars think that the character of the ultimate controller,the proportion of institutional investors,the proportion of shares held by the management of shareholding and other equity governance will affect the quality of information disclosure,and the relationship between equity governance and the quality of information disclosure did not form a unified conclusion.Appropriate equity governance can effectively improve the level of information disclosure,the study of the relationship between the company's equity governance and the quality of information disclosure is meaningful.In this paper,I chooses Sinovel as a research case,use information disclosure violations which happened in 2011 as the starting point,analyzes the equity control of the Sinovel,in-depth study of Sinovel ownership concentration,checks and balances,institutional investors,equity incentives,management,and other aspects of the content,expound the impact of the existence of equity governance on the quality of corporate information disclosure,and finally put forward effective suggestions on these defects.The research found that:(1)The ownership structure is unreasonable,decentralized equity led to the lack of management from the major shareholder of the supervision;(2)institutional investors as an important component of shareholders to participate in corporate governance are not enthusiastic;(3)The weak sense of rights and interests of small and medium-sized shareholders,rights and other difficulties in the status quo to some extent connivance of the company's illegal disclosure of information;(4)Information disclosure system is not sound,illegal costs are too low,lead to information disclosure violations repeated.The innovation of this paper is as follows:(1)from the perspective of a comprehensive analysis of the deficiency of the company's equity governance;(2)Combined with game theory,analysis the relationship between company management information disclosure quality and the external supervision.(3)In this paper,we find that the ownership structure of listed companies in our country should not be too scattered at this stage.Decentralized ownership structure easily lead to insider control,the appropriate concentration of equity to improve the major shareholders to participate in corporate governance and supervision of the enthusiasm of the management to help companies enhance the value of the same time,but also reduce the risk of management fraud.This study has some implications.At the present,due to the construction of related system is not sound in China,external regulation is short of efficiency and deterred,dispersed ownership structure is not suitable for the development of the company.If the shares held by a shareholder is not enough,it was easy to cause the phenomenon of "free rider",and lead to insider control.The internal controller can easily violate the information disclosure if the management lack of the supervision that from large shareholders and external regulatory penalties lack of efficiency and deterrent force.The chaos of information disclosure improvement is not only from the internal equity management,but also the soundness of the relevant system.