An Empirical Research On The Impact Of Internal Capital Market Tunneling To Information Disclosure Quality

Due to historical, the friction between a large part of China's listed companies which are the restructuring of state-owned enterprises and the external capital market is very prominent and it prompted that internal capital market has entered a era of rapid development and related-party transactions have considerable universality.The headquarters of conglomerates using of tunneling of internal capital market seize and plunder resources of listed companies because of the Government's restrictions on market allocation, low liquidity of capital markets, and the problem of "adverse selection" causing by serious information asymmetry and so on. In order to win the confidence of investors and access to external funds, the listed companies have to be deliberately conceal information of tunneling or using their advantage of accounting regulations to amend the disclosure of for earnings management which not only affect the quality of information disclosure, but also damages the small and medium-sized shareholders. Thus, it has important significance to study on the impact of internal capital market tunneling to information disclosure quality of listed companies.In this paper, firstly, the basic theory of internal capital market, the tunneling and quality of information disclosure are reviewed. Secondly, the tunneling of internal capital market is divided into three categories: secured mortgage, funding lending and asset finance transactions, equity trading and other claims, then we introduce the mechanism of internal capital market tunneling impact quality of information disclosure. Thirdly, we do the research design which including proposed assumed, select variables and sample data, then build a model of empirical research. Next we optimize the dependent variable that is the variable quality of information disclosure by using of rough set theory mode. After the basis work, does an empirical research on the impact of internal capital market tunneling to information disclosure quality using the sample data of A share listed companies which exits tunneling and paired sample of Shenzhen Stock Exchange. The research shows that they has a significant negative correlation between internal capital market tunneling and the quality of information disclosed, and a variety form has significant negative to the quality of information disclosed; However, the size of tunneling is not affected significantly to the quality of information disclosed. The listed companies which existed guaranteed mortgage,funds lending and asset transactions has a significant negative impact to quality of information disclosure, but equity and creditor's rights trading and other types is not significant.At present, the capital markets of our country is imperfect because of economic restructuring, and the information disclosure system need to further improved. I hope that this paper must have the theoretical reference value and the actual promotion in advancing the state-owned enterprise reform, promoting the healthy development of capital markets and improving the information disclosure system.