Research On The Level Of Voluntary Disclosure In Profit Forecast Of China IPO Governance

On the base mandatory disclosures, voluntary disclosures make corporate disclosures more complete and specific, and improve the quality of corporate disclosure, which is helpful in getting of information dissymmetry and incompleteness, in realizing fairness and efficiency of capital market. Because of theses, people pay more and more attention on voluntary disclosures. Foreign scholars have done lots of studies on voluntary disclosures, but internal scholars have done a little on those, especially on empirical research. Because of the affection of unique economy environment, economy development and traditional culture, listed Chinese companies' corporate governance has some unique feature, so many foreign research results on voluntary disclosures are not fit for listed Chinese companies effectively. The information disclosure of initial public offerings is an important aspect, in which, profit forecast is the focal point that a lot of invertors show solicitude for. But in our country, among IPO listed companies, majority unwilling disclose the information of their profit forecast. Then, this paper empirically examines the linkages between corporate governance and the extent of profit forecast voluntary disclosures in annual reporting provided by listed Chinese companies.Firstly, this paper reviews the relevant study at home and abroad ,and then introduces the concept and related theory, this provide the theoretical support to the research work for the subsequent. Secondly through empirical analysis testing related hypothesis. In this study, corporate governance is characterized by eleven attributes, which are the board of directors, the independent director proportion, CEO duality and the proportion of independent directors to total number of directors to total number of directors on the board , the proportion of social corporate shares, the proportion of outside ownership , the proportion of SC(state-owned corporations)ownership, the proportion of managerial on the board, the proportion of supervisors ownership and ownership concentration. Meanwhile, firm size and the net assets returns ratio are chosen as the control variables. This study is based on a sample 231 listed Chinese companies on Shanghai Stock Exchange. Then, a Logistic regression model is established to test the association between the dependent variable of profit forecast voluntary disclosures and the independent variables of corporate governance, The results indicate that the independent director proportion and ownership concentration are significantly related to the extent of voluntary disclosures, while the coefficients for the other independent variables are insignificant. Finally, based on the empirical evidences, we provide the corresponding measures and some advice on improving IPO listed Chinese companies' profit forecast voluntary disclosures.