Research On The Impact Of Shenzhen-Hong Kong Stock Connect Mechanism On The Quality Of Information Disclosure Of Listed Companies

The “Development Plan for Accounting Informatization(2021-2025)” points out that it is necessary to establish a standardized,transparent,open,dynamic,and resilient multi-level capital market.The comprehensive implementation of the stock issuance registration system reform also needs to be based on the continuous improvement of information disclosure quality.Therefore,it is necessary to improve the system and rules for capital market information disclosure with constraints,high efficiency,and quality,and improve the quality of enterprise information disclosure.Existing literature mainly studies the impact of information disclosure quality from the perspectives of internal governance and external constraints of enterprises.As a key measure for further opening up the capital market,the Shenzhen-Hong Kong Stock Connect mechanism has important significance for deepening China’s financial system reform and improving the quality of enterprise information disclosure.The implementation of the Shenzhen-Hong Kong Stock Connect mechanism in2016 not only accelerated the opening-up of China’s capital market but also provided new opportunities for listed companies to improve their information disclosure quality.Based on information theory and agency theory,this article examines the impact of the implementation of the Shenzhen-Hong Kong Stock Connect mechanism on enterprise information disclosure quality.Taking the implementation of the Shenzhen-Hong Kong Stock Connect mechanism in 2016 as a natural experiment,this study takes the Shenzhen Stock Exchange listed companies as the research object and uses the information evaluation tables published by the Shenzhen Stock Exchange from 2010 to 2021 as the sample period to observe the information disclosure quality of listed companies.By establishing a difference-in-differences model,this study examines the impact of the implementation of the Shenzhen-Hong Kong Stock Connect mechanism on the information disclosure quality of listed companies and explores the impl the implementation effect of the mechanism.The study found that after the implementation of the Shenzhen-Hong Kong Stock Connect mechanism,compared with companies not included in the mechanism,the information disclosure quality of companies included in the mechanism significantly improved,and the effect was more significant for state-owned enterprises,GEM enterprises,and enterprises with combined positions.The mechanism works through two mechanisms:on the one hand,the implementation of the Shenzhen-Hong Kong Stock Connect trading mechanism can be seen as the integration of domestic and foreign capital markets.A large number of foreign investors enter the domestic capital market to seek high-quality companies for investment,participate in shareholding,form regulatory effects,improve corporate governance structure,and improve information disclosure quality.On the other hand,the opening of the capital market can attract the attention of domestic and foreign analysts,auditors,and other parties,forming a supervisory effect to force listed companies to improve their information disclosure quality.Finally,based on the above research,suggestions are made to expand the opening of the capital market,improve the information disclosure system for listed companies,strengthen supervision of intermediary agencies,and optimize investor quality.