Study On The Relationship Between Corporate Governance And Voluntary Disclosure

Information disclosure of listed companies is the way to report operating results to investors. It can be divided into mandatory disclosure and voluntary disclosure. As a result of late start of China's capital market, research of the voluntary disclosure is not sufficient, and lack of relevant guidelines and supervision, resulting in the reaction of voluntary disclosure on the corporate governance structure has been watered down. This paper analyzes the intrinsic relationship between voluntary disclosure of listed companies and corporate governance. Owing to incomplete corporate governance, Voluntary disclosures are not enough. For better development of Security market, it should provide all range of information like voluntary disclosures for investors to analyze. At the same time, an effective corporate governance of listed companies also contributes to the improvement of disclosure of accounting information.On the basis of current literature at home and aboard, we focus on the relations between voluntary disclosure and corporate governance with empirical and norm method In this paper, we introduce something about voluntary disclosure, including its contents, regulations in USA and CHINA and its status, and also considered the effect of corporate governance. We design the voluntary information disclosure items, mainly about the company background information, the employee information, the management information, the forecast information. The empirical part choose 100 listed companies in Shanghai Stock Exchange market as the samples, analyzing their annual report data of 2005,2006 and 2007, using least squares regression analysis. I chose seven items to reflect the character of corporate governance. They are shareholding ratio of the biggest holder, the proportion of outstanding shares, the design of the Audit Committee, the general manager and chairman of the settings, the scale of the Board, the proportion of independent directors, and the share of executives. By setting up a score table, we get voluntary disclosure index to be dependent variables. Through the analysis, we get some different conclusions compared with the theoretical analysis: corporate governance is indeed influences voluntary disclosure in shareholding structure, the situation of that two positions, the scale of Board and other aspects while voluntary disclosure have an impact on corporate governance. Through theoretical analysis and empirical research, we can see there are many problems lie in the governance structure of listed companies and information disclosure. Finally we provide a number of policy suggestions on improving corporate governance of listed companies and enhancing the voluntary disclosure, such as improve stock propriety structures, increase the portion of exchange stock; and the supervisor should release rules to guide listed company disclose voluntary information and provide a excellent atmosphere of financial development.