Analysis Of The Relationship Between The Quality Of Corporate Disclosure And Its Financial Risk

Since the outbreak of the new coronavirus pneumonia in early 2020,the global economy has suffered a huge impact.The epidemic has affected various industries and has had a more profound impact on corporate economic performance.Therefore,it is especially important to improve the financial risk management capability of enterprises in a risky environment.For enterprises,cash flow is blood,and good corporate financial status determines future development,so how to deal with financial risk is very critical for every enterprise.According to the information asymmetry theory and signaling theory,it is known that the quality of true and complete,accurate and timely disclosure of accounting information is closely related to the long-term sustainable development of enterprises,which can effectively alleviate the financing constraints of enterprises,optimize resource allocation and reduce the occurrence of enterprise financial risks to a certain extent.Therefore,exploring the mechanism of information disclosure and financing constraints and its role with financial risks can help improve the quality of corporate information,which is of great practical importance in reducing financing costs as well as financial risks.Based on information asymmetry theory,agency theory and signaling theory,this paper analyzes the relationship between information disclosure quality,financing constraints and corporate financial risk.The article selects a total of 18,211 observations of China’s A-share listed enterprises from 2011 to 2020 as the research sample,selects information disclosure quality as the explanatory variable,financial risk as the explanatory variable,and financing constraints as the mediating variable to establish a multiple regression model.We empirically analyze and test whether information disclosure quality can reduce corporate financial risk by alleviating corporate financing constraints,and whether financing constraints have a mediating effect in the effect of corporate information disclosure quality on financial risk.The empirical study reveals that the higher the disclosure quality of enterprises,the lower their financial risk,the more enterprises can achieve the purpose of alleviating financing constraints by improving their disclosure quality,and the financing constraints play a partial mediating effect in the relationship between disclosure quality and financial risk.Based on the results of the above study,it can be concluded that enterprises themselves should disclose accounting information in a timely manner,improve the reliability of information,and establish an internal information disclosure management system as well as a financial early warning system.In addition,the government should strengthen supervision,establish a perfect information disclosure appraisal system,update and improve relevant laws and regulations,and increase the punitive measures for enterprises with information disclosure violations.This paper considers that the inclusion of disclosure quality,financing constraints and financial risks in the same framework to construct a model has enriched the existing research to a certain extent and has positive practical significance for safeguarding investors’ interests and promoting good corporate development.