An Investigation Into The Impact Of Fair Disclosure On The Stock Market Information Environment

Fair disclosure prohibits corporations from privately disclosing material information to select investors or securities markets professionals without simultaneously disclosing the same information to the public. On October,2000, the voluntary disclosure practices of corporations with publicly traded securities became subjects the requirements of the Securities and Exchange Commission's Regulation Fair Disclosure. There are many different opinions on the impact of Fair Disclosure on the stock market information environment.Compared with the study of the Regulation Fair Disclosure of SEC, the domestic research on fair disclosure is just in the initial stage. This paper does in-depth an investigation into the impact of fair disclosure on the stock market information environment. It starts with the introduction of relative domestic and foreign research achievements. Firstly, the paper investigates into the impact of fair disclosure on the stock market information environment from three mainly aspects, including the information disclosure, information transmission and information utilization. Secondly, we overview the evolution of Chinese information disclosure system and analyzes the importance of fair disclosure which basing on the Chinese stock market information environment. Third, this paper select a sample of earnings announcement come from listed corporation of Shenzhen stock exchange between Q1 2006 and Q3.Through econometric models, this paper have study on the changing of the stock market information environment before and after the enforcement of the regulation for the fair disclosure. At last, this paper gives some suggestions on the basis of previous research.The conclusions are as follows. Firstly in theory, Fair disclosure maybe reduced the quantity and quality of information available to the capital markets by changing the listed corporation information disclosure behavior, resulting in uncertainty of the information environment. Secondly, the empirical study after the enforcement of fair disclosure implicates fair disclosure plays a positive role on the information environment of Chinese stock market.