The Study Of The Effects Of Transparency On Firm Value

The separation of ownership and management in modern enterprise has led to information asymmetry between investors and managers, information transparency is a bridge built to reduce this information asymmetry, increase trust between managers and investors. More and more companies starts to focus on the improvement of information transparency, and make their efforts to it. Information transparency is the integrated and comprehensive reflection of the quality of accounting information and disclosure forms. The improvement of information transparency can fully reveal the company's intrinsic value and firm value.This article choose 2005-2008 Shenzhen Stock Exchange listed companies as samples, combining theoretical and empirical research methods to verify the relations between information transparency and firm value. The theoretical part, with the conclusion of the theories based on related research, starts from the definition of information transparency, the costs and benefits of information disclosure, and existing measure was introduced, the firm value is also introduced in meaning and existing measure part. The relevant theoretical analysis between information transparency and firm value is in three aspects: the company's continuing operations, improve the corporate governance mechanism, the cost of capital. In empirical research, according to the current situation in our country, a listed company with the Shenzhen Stock Exchange disclosure examination results and Tobin'sQ are used as a proxy for transparency and firm value, combined with a number of corporate governance variables as control variables, using univariate analysis and multiple regression analysis to explore the relation of information transparency and firm value. The results show that transparency of information has a positive correlation to firm value, to some extent, information transparency increase the value of the company, The results also provide the empirical basis of Chinese listed company information disclosure system construction. Finally on the way to improve information transparency and improve capital market efficiency, encourage listed companies to improve corporate governance to enhance efficiency and regulatory supervision of information disclosure policy recommendations.