Research On Information Transparency Of Chinese Listed Companies

Corporate information transparency is becoming the attention focus of academe and industrial circles because of its importance to capital market. Based on information asymmetry theory and going down the thread of Emergence Cause→Determinant Mechanism→Economic Consequence, this innovative research is started from corporate information transparency definition, and then build up systematic analysis framework for Chinese listed company information transparency. Through single-factor significance test, Probit regression, two-stage multiple regression respectively, this paper empirically dig out the main factors determining the information transparency of Chinese listed companies, and explore its effects on investor behaviors and market information asymmetry. These researches provide scientific empirical evidence for constructing information disclosure policy for Chinese listed companies and regulating domestic capital market.This paper put forward that corporate information transparency have instinctive characters of dynamism and relativity, and reveals that poor information quality is the direct and key reason for relatively low information transparency of Chinese listed companies, the evaluation for information transparency should according to information quality, which can improves the objectivity of evaluation. Empirical analysis further proves financial status, executive motivation, operation environment and corporate characters play the main role on the quality of information disclosure for Chinese listed companies. Unfortunately transgression cost contributes poorly on decreasing inferior information disclosure, and corporate governance also contributes much less than expectation. For example, institutional investor, independent director and executive incentive do no help much on increasing corporate information transparency. The ownership proportion of the largest shareholder and the post separation between CEO and board directors do not bring in apparent effect. Speculation hovers over Chinese stock market, Uninformed investors trade mainly following informed investors. However, information cost still shows apparent effect on investors' trading. The uninformed following trade and low transparency of companies are exploited by some informed as the tool of fleecing interest of those uninformed. Higher information transparency of listed companies can improve decreasing information asymmetry on stock market, But the effect is still low compared with that of relatively mature market like US. As a conclusion, increasing transgression cost, consummating corporate governance, developing and strengthening the information and financial intermediaries are fundamental approaches for increasing corporate information transparency and enhancing market effectiveness.