Study On The Transparency Of Listed Company Financial Reporting Based On Gray Theory

With the accelerated development of economic globalization and rapid development of China, the transparency of listed company financial reporting are more and more concerned. Financial reports of listed companies are bridges between listed companies and information users. It is an important way for the information users to access to the information of listed companies. It is an important basis for analysis of the company's operating results, strategic intent, developments, etc. The transparency of listed company financial reporting are a comprehensive reflection of the quality of accounting information. The transparency of listed company financial reporting will directly affect the information users who make decisions based on accounting information. It would cause great damage to investors if the listed company's financial reporting have violations. The transparency of listed company financial reporting is essential for the information users who analysis it for a more comprehensive understanding of listed companies in the real situation. Evaluation results of the transparency of listed company financial reporting can provide a basis for information users to make decisions.Study on the transparency of listed company financial reporting will urge listed companies to provide higher quality financial reports of listed companies. It is conducive to create a good accounting environment, and promote the rational and orderly development of the market. Currently, methods of the transparency of listed company financial reporting are rarely. We try to find a new method used to evaluate the transparency of listed company financial reporting based on the research knowledge. By analyzing the generation of listed company financial reporting, constitutes, supervision, communication and accessibility of listed company financial reporting,we construct the transparency of financial reports of listed companies in the evaluation index system. According to the four sections identified in a number of indicators, we use statistical methods filter out the transparency of financial reports of listed companies in the evaluation index system for the most outstanding and the most representative indicators. It is to ensure that both reflect the difference in various indicators of transparency in financial reporting of listed companies, and avoid duplication of information calculated to improve the evaluation system of scientific rationality. Combine the evaluation index system of the transparency of listed company financial reporting with the characteristic of "gray"(some of the information is known, some of the information is unknown) in listed company financial reporting, we distinguish the level of transparency of listed company financial reporting based on gray theory.In order to validate the accuracy of the evaluation method of the transparency of listed company financial reporting, we selected 62 listed companies which are assessed their information quality by the Shenzhen Stock Exchange and 40 listed companies of Shanghai Stock Exchange as the sample to study. In the evaluation process, all of the indicators are scientific and rational quantify. We use AHP to establish the weight of the indicators by the views of accounting staff, experts and scholars. We have established a more consistent comparison matrix, and construction of Grey Theory in the whitening functions, they are continuous functions which can deal with the different levels of gray. Those companies which have been assessed in the information disclosure of poor quality by the Shenzhen Stock Exchange, the transparency of listed company financial reporting are in a low level. At the same time, the companies which have been assessed in the information disclosure of good quality by the Shenzhen Stock Exchange, the transparency of listed company financial reporting are in a high level. The results of 40 listed companies which listed on the Shanghai Stock Exchange are also consistent with the actual situation. Therefore, the evaluation method of the transparency of listed company financial reporting based on gray theory has some reference value for the securities regulatory authorities and investors.