A Systematic Research Into The Information Disclosure Of Chinese Listed Companies And Its Regulation

Since the sequent establishment of Shanghai Securities Exchange in 1990 and Shenzhen Securities Exchange in 1991, Chinese securities market developed quickly. With the development a great deal of capital has been collected to support economic increasing and the reform of stat-owned enterprises. And also, the securities market play an important role in establishing of modern-enterprise mechanism, transform of economic structure, extension of invest channel, etc. In the period, stock market does well in scale and trading methods. On the other hand, some problem accomplishing, such as poor quality of listed companies, weak protection of investor' benefit, unsuitable market structure, high risk of political policy, and so on. Among those problems, false information disclosures are serious especially. For example, after 2001, a series of great malpractices in information disclosure were discovered. That leaded to credit crises of stock market and listed companies. And those events draw people's attention to the issue about information disclosures of listed companies.Stock market is a informational market. Standardizing, seasonable, and sufficient information disclosure is the basis of investors' making correct deciding and capital allocation. So that the market can guide resource flow to those most efficient enterprises, and come to optimum capital allocation. Also, correct and standard information disclosure embodies the rule of equity and justice, and can protect investors' benefit efficiently, enhances their faith. On the contrary, false information disclosures disobey the rule of equity and justice, destroy investors' benefit and faith, and cut down the market's efficiency.Every element is not independence in a system. If the issues of information disclosure of Chinese listed companies are to be recognized and understudied correctly, the environment of Chinese economic system reform and the history of stock market should be taken into consciousness. In order to research the subject of information disclosure of listed companies, the background of Chinese economic mechanism reform and the history of securities market should be pay considerable attention. In the research, System Theory is useful tool, since information disclosure and regulation of listed companies are included in a complex system which is artificial, opened, dynamic, and controlled. In my opinion, because system can be study as an institution in the viewpoint of NIE, therefore only another tool, New Institutional Economics (NIE), which developed the theory of institution, should be combined in the research, so that an overall interpretation can be provided. For this reason, this paper, base on System Theory and NIE simultaneously, researches the problems in information disclosure of Chinese listed companies.And also, the most remarkable character of securities market is asymmetric information. That can lead to moral hazard and adverse selection. In the viewpoint of NIE, institute is the basis and result of interests playing game; hence game theory under asymmetric information is applied in studying.There 9 sections in the paper. Section 1 is the paper's introduction. Next, theories and arguments about information disclosure are reviewed in section2. Efficient Capital Market Hypothesis (ECMH) indicated information is effective in capital market in some assumptions. Unfortunately, the real world is not always that case. Many economists have argued the validity of...