Protection Of Investors, Product Market Competition And Quality Of Information Disclosure

With development of China's market economy, as a part of corporate governance structure, the quality of information disclosure play an increasingly important role in the modern capital markets. On the one hand, the higher quality of information disclosure will make the resources flow rationally and improve the circulation of capital market efficiency. On the other hand, the quality of information can reduce the degree of information asymmetry. The corporate governance mechanisms have an important influence on disclosure of information. So we choose investor protection and product market competition to test the relationship between the corporate governance mechanisms and the quality of information disclosure. The relationship between product market competition and disclosure of information belongs to the research area of non-legal aspect of corporate governance. The relationship between investor protection and information disclosure belongs to the research area of the legal aspect of state and the mechanisms of corporate governance.This paper selects 2004-2008 Shenzhen-listed company as the research sample. We choose Shenzhen stock Exchange disclosure of information evaluation results as a substitution variable for the variable of the quality of information disclosure. And we choose investor protection and product market competition as explanatory variable for the quality of information. And last, we select the size of company, financial leverage, whether mangier director and chairman are combined and the proportion of independent directors as control variable. In this paper, we want to test the relationship between investor protection, product market competition and the quality of information disclosure, And in the different degree of product market competition, the relationship between the company's competitiveness, investor protection and the quality of information disclosure. Research find the degree of product market competition and investor protection have a positive impact on the quality of information disclosure, The industry in which lack of competition, the company's competitiveness and quality of information disclosure is negatively correlated, Research find that in the industry of lack of competition, the medium's protection to investor and corporate-level protection can make up for the deficiencies of product market which is lack of competition, and to improve the quality of information disclosure.