The Analysis Of Insider Trading And Corporate Governance Basing On The Voluntary Information Disclosure

Insider trade is a kind of badly market violation behavior, coming from information asymmetry, then information disclosure naturally becomes the special and important instrument to deal with insider trade.This paper mainly uses game, regression and correlation analysis to discuss the influence of corporate governance mechanism (property right structure and governance structure) on voluntary information disclosure level in china. And then we try to know more about corporate information disclosure level (and insider trade) and influence factors in corporate governance's view.As the paper gains, The voluntary information disclosure is corporation's clear cognition and promote reply to itself governance and market(conclude insider trading),so information disclosure level can look as reliable proxy variable to insider trade. There is little difference in expectation of corporate information disclosure index between corporations with different kind of NO.1 shareholder. It is not fine for kinds of firm's information disclosure in whole. Besides, in the same kind of shareholders the difference is a little big. The level of information disclosure are both high when share right is overage centralized and discentralized. The influence of big shareholders'kind is positive obviously. That is to say, non-state-owned corporation's information disclosure level is obviously higher than stated-owned corporation's. The proportion of independent director is positive correlation but not obvious. It shows that china independent director play a finitied role. We can see that corporate governance has obviously influence to voluntary information disclosure,and so corporate governance has obviously influence to insider trade and its degree.From above we gain that ,at present,improving corporate voluntary information disclosure is an efficient way to put an end to insider trading and such violate behavior. So whatever variable adjust which can improve coporate voluntary information all can restrain insider trading efficiently.