On Accounting Information Disclosure In Corporation Governance

Massive facts prove that information disclosure is one of determining factors of corporation governance, while the frame of corporation governance has a direct influence on the requirement, the contents and the quality of information disclosure. Generally speaking, information disclosure is restricted by two system: interior system and exterior system. Exterior system means various requirements of the state and the related institutions on corporation information disclosure. Internal system means corporation governance has various system requirements on information disclosure. In terms of contents, time, details, etc, these requests may comply with the exterior system of information disclosure or not so, but corporation's information disclosure has its boundary. Generally, exterior boundary is restricted by exterior system information disclosure, i.e. legal laws and regulations, while internal boundary is restricted by the frame of corporation governance. We can find that in many countries corporation's information disclosure is not only restricted by legal laws and regulations. Massive information of many corporation is disclosed voluntarily for the purpose of corporation governance. Therefore, information disclosure of corporation governance is restricted and driven by interior and exterior systems.Practice also proves that whether the information disclosure system is perfect or not can directly affect the result of corporation governance. A powerful information disclosure system is a typical characteristic of corporation supervision,and vital for shareholder to exercise their vote rights. Experience from countries where capital stock markets are active indicate that information disclosure is also a powerful tool which can affect corporations'behaviors and protect potential investors'benefit. A powerful information disclosure system contributes to fund -collecting and then ensure shareholders keep confidence on the capital markets. Shareholders and potential investors must be access to regular, creditable, comparable and detailed information so that they can make a correct assessment on whether the managers are competent or not, and stock'value assessment has a direct influence on policy-making. Lack of information can affect the markets'efficiency and increase the capital cost and lead to wrong resources disposition. Because of the important role information disclosure plays, many...