Management Abilty?Compensation Incentives And Information Disclosure Quality

Information disclosure is an important link between internal and external investors,high-quality information disclosure is an important premise to maintain the healthy development of the capital market,reduce the principal-agent cost and improve the self-interested behavior of the management.Therefore,the quality of corporate information disclosure has always been highly valued by various participants in the capital market.However,in order to gain a competitive advantage to earn more additional income,listed companies are likely to take covert measures to manipulate information and conceal or falsely disclose important company information from stakeholders.but also creates an information environment in which "bad currency pursues good currency",which is not conducive to the capital market to play its due functions.Based on the basic national conditions that China will still be in the primary stage of socialist society for a long time,laws and regulations related to information disclosure still need to be improved,so the level of information disclosure of listed companies still has a lot of room for improvement.Existing literature from the general factors influencing the quality of information disclosure and its economic consequences to explore,but mainly focus on corporate governance structure,financial situation,the influence factors of legal liability and external supervision and so on,about management impact on the quality of information disclosure is limited to the management of personal characteristics(such as gender,age,background and term)factors,few attention to the management competence.This paper aims to explore the relationship between management competence and information disclosure quality and analyze the influence of compensation with different fairness levels on the relationship between management competence and information disclosure quality from the perspective of compensation equity.In addition,based on the market-oriented economic environment in China,this paper studies whether there is any difference in the relationship between management capability,compensation incentive and information disclosure quality under the market competition of different products.the combination of theoretical analysis and empirical test two research methods,the second will pay incentive and information disclosure quality of these two factors together,to pay fair the incentives to the management ability and quality of information disclosure,finally according to the degree of product market competition grouping was studied for the samples.Through the full sample regression and sub-sampleregression and robustness tests of the explained variables,explanatory variables and other variables,the research results show that:(1)The ability of the management has a significant effect on the quality of enterprise information disclosure.Based on the higher decision-making choices and analysis of situations,the ability to deal with problems and the cost of maintaining reputation in the daily operation and management of the enterprise,the more inclined the high-level management is to deliver true and effective information to shareholders and other stakeholders,(2)The salary incentive as internal governance mechanism of supervision and restriction management,through the maintenance management of fairness perceptions,improve their work enthusiasm,on improving the quality of information disclosure of listed companies,and therefore management ability effect to the promotion of information disclosure quality is affected by the regulation of salary incentive.(3)The product market competition as a kind of external competition mechanism,can affect the pay equity incentive effect.In contrast,the stronger the management's awareness of risk and crisis and the more active the ability to play,the closer the correlation between the management's ability,compensation incentive and the quality of information disclosure of listed companies.The conclusion of this paper shows that the information disclosed by listed companies conveys the capability of the management,and the management has the motivation to reveal its capability through information disclosure.Through management motivation,this study focused on the management ability strong or weak influence on the enterprise information disclosure quality and the effective condition,and puts forward the corresponding Suggestions:(1)The company should continue to strengthen the appraisal of management ability,and pay attention to the management ability to raise the quality of information disclosure.(2)The fair level of salary incentive is more important for the management to play,so the enterprise should design a reasonable and fair salary incentive to stimulate the motivation of the management to the maximum extent.(3)The government should speed up the construction of marketization,strengthen the degree of product market competition as an external governance force,urge it to carry out effective supervision over the management and enhance the incentive effect of compensation.The innovation of this paper is as follows:(1)This paper integrates the signal transmission theory and incentive health theory,and focuses on the influence of psychology and behavior of management heterogeneity on the formulation and implementation of corporate information disclosure quality and other policies,thus enriching the economic consequence theory of management heterogeneity.(2)This paperextends the definition of heterogeneity of management in the higher-order theory,and believes that the internalization of management characteristics into management motivation and then into ability can affect the realization of corporate decision-making and performance objectives,further deepening the understanding of management capability.(3)This paper takes the management as a "black box" with differences,pays attention to the management's sense of pay equity,and believes that the level of pay equity can also generate incentive effect on the management.This paper provides empirical data for this through two test methods.The limitations of this paper are as follow:(1)The limitations of the research sample data.Since the quality of information disclosure in this paper is measured by the information disclosure evaluation level of the website of shenzhen stock exchange,only listed companies of shenzhen stock exchange are selected in this paper,which reduces the sample size to some extent.In addition,management capability measurement method needs to exclude certain industry data in two stages.This step again reduces the research scope of this paper and makes the research results have certain limitations.(2)The selection of control variables has limitations.in the multiple regression model established by scholars in this paper,not all control variables can have a significant impact on the explained variables and explanatory variables,and there may be other factors not covered,which will also have an impact on the empirical results.