The Study On Information Discloure Mechanism To Solve Financial Agency Problem

Under the modern financial market and company system, the separation of fund providerfrom fund user and separation of enterprise's ownership from control power, will inevitablelylead to the interests conflict between the manager and shareholder, shareholder and creditor,namely the financial agency problem.This paper first introduces the financial agency problem caused by informationasymmetry in the capital market. The information asymmetry will produce " informationproblem " and " agency problem ". The information problem refers to the user of the fund,namely the entrepreneur and manager, often have more information about the value ofinvestment opportunity and the operating position than the provider of the fund, namelyinvestors, and incline to exaggerate its value and managerial competence. So, investors facean " information problem " while making the investment decision. Agency problem meansonce investor has made the decision and fund has been inputted enterprises, the managers ofenterprises will incline to use the fund according to their own interests, damaging investors'interests.Many methods can solve the problems above; this paper mainly focuses on theinformation disclosure mechanism. In the capital market, the channels that investors obtaininformation mainly are: financial reports (including financial statements, statementsannotations, management discussion and analysis and some other disclosure files), voluntarydisclosed information (including management predictions, financial analysis reports, onlineconference meetings, news briefing and company's website, etc.) and the informationintermediaries (including auditors, financial analysts, industry experts and finance andeconomics media, etc.). So, this paper mainly explores mandatory information disclosure,voluntary information disclosure and independent information provider of third party,analyses their economic principles, information contents, information credibility and thereality that empirical research revealed. Finally, the paper probes into the current situation ofthe information mechanism and the existing problems in the capital market of our country,and proposes methods to the problems in order to perfect the information mechanism andenhance the capital market efficiency of our country.