Study About The System Of Indicators Ranking Accounting Transparency Of Listed Companies In China

How to improve the development of capital market of our country is an increasingly concerned subject recently. From a point of view of setting up a system of indicators scoring accounting transparency of listed companies and developing a third-party-ranked system, this article suggests a way to improve the development of capital market. In order to establish this system of indicators, this article discusses different opinions of various organizations and academician firstly, puts forward the differences between the concept of accounting transparency in a narrow sense and in a broad sense, and then makes the constituent factors clear. After that this article demonstrates the significance of studying accounting transparency by making the basic theories of new institutional economics, efficient market hypothesis and information economics for reference. In addition, it analyses the relationship between accounting transparency and corporate governance, put forward views that compared with activities of ranking corporate governance it is more suitable and preferable for the actual situation of our country's capital market to ranking accounting transparency. On the bases of above analysis, making domestic and oversea ranking systems for reference, and integrating with the actual situation of our country, this article designs a system of indicators to score the accounting transparency of listed companies. The system consists of 73 indicators. They can be divided into 5 groups: the badness records (15 indicators); the financial forecasting information (4 indicators); annual reports (37 indicators); the timeliness of disclosures (8 indicators); the information disclosures in corporate web sites (9 indicators). Every kind of indicators can form a sub-scorecard separately. The investors and potential investors can compare different companies' sub-scorecard to rank the accounting transparency of listed companies. Finally, the article briefly explains the operating mechanism of this ranking system designed and suggests some relative suggestions.