Research On The Level Of Voluntary Disclosure In Profit Forecast Of China Corporate Governance

With the continuous development of China's capital market, the information demand of investors is increased. The company in order to meet the growing information requirements of investors and appeal the potentional investors,in addition to disclose the information required by the investors,it increasingly tends to voluntary disclosure of some information.Voluntary disclosure of Profit forecasts of information has always been mentioned by academics,listed companies'and investors'attention. Corporate disclosure Profit forecasts informations voluntarily is not only helpful in getting of information dissymmetry and incompleteness and creating a stable and fair market environment,but also help in properly evaluating the potential profitability of the company and making rational decisions for investors.But according to statistics,after changing the China's IPO profit forecast to be disclosed voluntarily,the amount of companies which disclose the profit forecast is decreasing year by year.Then, this paper use a combination of normative and empirical research methods to examine the linkages between corporate governance and the extent of profit forecast voluntary disclosures in annual reporting provided by listed Chinese companies.Firstly,this paper described the profit forecast of China's system development process and the current profit forecast system on the basis of reviewing the relevant study at home and abroad.Secondly,the paper through empirical analysis texting related hypothesis,such as Agency Theory and Signaling Theory.Then it examine the linkages between corporate govemance and the extent of profit forecast voluntary disclosures from the ownership structure and board characteristics.This study chooses the IPO companies from January 1,2007 to December 31,2009 as the sample data,use Logistic regression model to analyze the impact of governance structure on voluntary disclosure.In the study,corporate governance is characterized by seven attributes,like the proportion of on the board,the proportion of state-owned corporations ownership and so on,and two control variables.The results indicate that the independent director proportion, the proportion of managerial ownership and ownership concentration are significantly related to the extent of voluntary disclosure,while the coefficients for the other independent variables such as the total number of directors,the proportion of on the board,the proportion of state-owned corporations ownership and CEO duality are insignificant.Finally, based on the empirical evidences, we provide the corresponding measures and some advice on improving the corporate governance structure and IPO listed Chinese companies'profit forecast voluntary disclosures.