Empirical Analysis of Corporate Governance Mechanisms and the Transparency of Accounting Information
|School||Capital University of Economics|
|Keywords||information transparency corporate governance the quality of information disclosure|
It is well known that, corporate governance and disclosure of accounting information are considered to be an important part of the modern corporate system, and they play a very important role in the company’s economic performance. If we assume modern corporate as a sophisticated system, and the accounting information system can be considered to be its central nervous system. During the ten years that China’s securities market development, the quality of accounting information disclosure of listed companies is not only result in whether the securities markets can develop regulately and healthily, but also it plays a key role for information users to judge the value and make investment decisions effectively. True, accurate, complete and timely information disclosure of listed companies is an important guarantee and contributing factor for corporate governance sustainedly and effectively. The necessary for corporate governance, was partly born in the information asymmetry, and the information disclosure system is aimed to the elimination of information asymmetry as possible, so that vulnerable side can enjoy the fullest possible information to make " full information decision ", in order to achieve self-protection as much as possible. If you want accounting information play its functions, first we must ensure that the environment is sound in which accounting information as its "central nervous system," that is meaning, sound corporate governance structure is necessary; second, we should make some requirements on the quality of accounting information. The quality of accounting information can be considered in accordance with following six angles,they are the quality of surplus、value relevance、timeliness、comparability、the quality of disclosure and transparency. So far, many studies on the quality of accounting information almost started from earnings quality and value relevance,there are very little research starting from information transparency. Therefore, this article selected information transparency as an alternative variable for high-quality accounting, research the interaction between governance of listed companies and accounting information transparency deeply. To promote the legitimate of capital markets, operate robustly and maintain public confidence for capital markets, we are required to strengthen the construction of information disclosure and transparency, in order to increase transparency.Explore the relationship between the two, we must first define their own meaning, to find out the join points of each other. Therefore, this paper first represent the theory of information transparency and corporate governance respectively, and then from the efficient capital market hypothesis theory, principal-agent theory and information economics point of view, to discuss the link between the two, and then select a number of representatives variables of corporate governance as alternative variables for corporate governance, namely, the control of the largest shareholder, the proportion of tradable shares, the board size, the proportion of independent directors, as well as chairman and general manager of two grade-one level. Furthermore, based on theoretical framework, empirical analysis the relatation between governance for listed companies and transparency of accounting information, validate the impaction that corporate governance mechanisms made on transparency of accounting information. Finally make conclution, and analysis combined with the conclusions, then put forward some measures to promote the interaction between the two.The principal innovation of this article is that, on the background of the financial crisis and the listing on the GEM, people have put more attention on the transparency of accounting information, the transparency of accounting information further demonstrates its importance, thus improving the quality of information disclosure, namely, to enhance the quality of information transparency is imperative, but how to improve the transparency of information, also is the root causes, thus this paper studies on the selected variables, aimed at finding the key factors affecting the transparency of information, then presents a more targeted measures to help improve the quality of information disclosure. In addition, the research articles considering the transparency of information disclosure as an alternative variables for high-quality is relatively small, this paper also combined it with corporate governance, and sum up the relationship between the two,with a certain degree of innovation. In this paper, we adopt the latest data, and the time span is relatively large, from 2004 to 2008, ensure that the conclusions more revealing.